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Synopsis: A major legal battle has erupted between Infosys and Cognizant in the U.S., with Cognizant accusing Infosys of misappropriating trade secrets related to healthcare software. Infosys has denied all allegations, promising to defend its position in court. The dispute is intensified by the recent history of leadership movements between the two companies, with Cognizant’s CEO and other top executives having previously worked at Infosys. This lawsuit marks another chapter in the ongoing rivalry between the two IT giants.
A significant legal battle has emerged between two of the world's leading IT services companies, Infosys and Cognizant, as the latter has filed a lawsuit in a U.S. federal court, accusing Infosys of misappropriating trade secrets. The lawsuit was initiated by Cognizant's subsidiary, TriZetto, and revolves around allegations that Infosys unlawfully accessed and utilized confidential data from TriZetto's Facets and QNXT software platforms. These platforms are critical tools used by healthcare insurers for managing various administrative functions.
In response to the lawsuit, Infosys has vehemently denied any wrongdoing, stating, "Infosys is aware of the lawsuit. We deny all allegations and will defend our position in the court."
The legal dispute is further complicated by the intertwined histories of the companies' leadership. Cognizant's current CEO, Ravi Kumar S, was a former senior executive at Infosys, serving as president and deputy COO before his departure in October 2022. His move to Cognizant, followed by the recruitment of several other key executives from Infosys and other Indian IT giants like Wipro, has heightened competitive tensions between the two companies.
Cognizant's recent appointment of Rajesh Varrier, another former Infosys executive, as the Chairman and Managing Director of Cognizant India, underscores the ongoing rivalry. Infosys had previously expressed concerns over Cognizant’s aggressive recruitment tactics, which it believes have led to the loss of key personnel.
This legal confrontation is not the first time Cognizant has been involved in a trade secret dispute. In 2020, Cognizant won a significant $854 million award in a similar case against Atos Syntel, although the award was later reduced and overturned on appeal.
ywords: Infosys, Cognizant, Trade Secrets, Lawsuit, U.S. Court, Ravi Kumar S, TriZetto, Healthcare Software, IT Services, Leadership Rivalry
