Infosys alleges anti-competitive practices by Cognizant

The legal dispute adds to a series of industry clashes, including Wipro suing Cognizant’s CFO for violating the cooling-off period and another executive over data misuse

In a significant development within the IT services industry, Infosys has escalated its legal battle against Cognizant, accusing the Nasdaq-listed firm and its CEO, Ravi Kumar, of engaging in anti-competitive practices. The Bengaluru-based IT major filed a countersuit in the Northern District of Texas, alleging that Cognizant’s actions hindered the launch of Infosys’s healthcare platform, Helix. Infosys is seeking a jury trial and triple damages for the losses it claims to have incurred.

This IT industry controversy stems from a lawsuit filed by Cognizant in 2024, accusing Infosys of misappropriating trade secrets related to healthcare insurance software. In its countersuit, Infosys alleged that Kumar, during his tenure at the company, deliberately slowed Helix’s development by failing to allocate necessary resources and programming talent. Kumar, who left Infosys in 2022, joined Cognizant as its CEO in January 2023.

Infosys further alleged that Cognizant poached senior executives, including Shveta Arora and Ravi Kiran Kuchibhotla, to disrupt Helix’s progress. According to the countersuit, Arora delayed staffing critical positions for nearly a year, negatively impacting Infosys’s reputation with clients and slowing the platform’s advancement. Arora and Kuchibhotla both transitioned to Cognizant in 2023 and 2024, respectively.

Also Read: https://varindia.com/news/cognizant-sues-infosys-over-trade-secrets

Legal disputes shake IT industry

The Cognizant controversy extends beyond the Helix platform. Infosys has accused Cognizant of leveraging its dominant position in the U.S. healthcare payor segment to stifle competition, claiming this harms clients by limiting access to competitive pricing and innovation.

In response, Cognizant released a statement emphasizing its commitment to integrity and fair business practices. The company defended its position, stating, “Cognizant encourages competition but opposes the misuse of its intellectual property to gain an unfair advantage.” It also reaffirmed its status as a market leader, citing its software products’ reputation for being best-in-class.

The case is the latest in a series of legal disputes within the IT services industry. Recently, Wipro sued Cognizant’s CFO, Jatin Dalal, for violating a mandatory cooling-off period before joining Cognizant. Similarly, Wipro pursued legal action in the U.S. against a former executive accused of transferring sensitive client data to a private email before joining Cognizant.

As the IT industry controversy unfolds, the high-stakes legal battles underscore the intensifying competition among global IT firms, particularly as they navigate growth challenges in key markets like the U.S. and Europe.