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Time of India
01-07-2025
- Business
- Time of India
Infosys vs Cognizant fight gets uglier! Why are the two big IT firms battling it out in the US? Explained
The legal battle revolves around TriZetto, a healthcare software platform acquired by Cognizant in 2014. The Infosys vs Cognizant fight is getting uglier by the day. But why are the two IT sector giants locked in a battle or employees in the US? In an ongoing legal dispute between the two IT companies, Infosys has identified two senior Cognizant officials, Americas President Surya Gummadi and Chief People Officer Kathryn Diaz, as primary figures in what it describes as anti-competitive practices targeting its US healthcare platform, according to an ET report. The allegations were detailed in a joint court submission, highlighting concerns over competitive practices and intellectual property. Infosys vs Cognizant: What's the fight about? The dispute centres on TriZetto, a healthcare software system that Cognizant purchased in 2014, which allegedly competes with Infosys's Helix platform. According to the report, Infosys has alleged that former Helix leader and current Cognizant CEO Ravi Kumar S, who departed Infosys in October 2022, deliberately postponed Helix's introduction and subsequently recruited essential personnel after joining Cognizant in January 2023, thereby undermining the platform's potential success. The report says that the dispute began in August 2024 when Cognizant's TriZetto launched legal proceedings against Infosys in a Texas federal court, claiming that Infosys had improperly utilised confidential information obtained through non-disclosure agreements to develop a rival solution. Subsequently, Infosys filed countercharges in January 2025, asserting that Cognizant had deliberately recruited high-ranking staff members and utilised proprietary information to compromise Helix. Infosys alleged that these activities were elements of a comprehensive plan to restrict competition within the American healthcare IT sector , the report adds. Regarding leadership positions, Infosys's recent court documents claim that Gummadi and Diaz played significant roles in Cognizant's strategy to hinder Helix's market introduction. The company asserted that these senior appointments were strategically planned to diminish Infosys's market position. Also Read | 'Maintain work-life balance': Infosys asks staff not to work overtime; Narayana Murthy had spoken of 70-hour work week idea Additionally, Infosys claimed that Ravi Kumar's previous oversight of Helix provided Cognizant with unwarranted benefits after his transition to the CEO position. What Cognizant Has Said Cognizant dismissed Infosys's counter allegations and sought their dismissal in court, stating that the accusations were unsupported by evidence and contained improper market definitions. "Infosys was caught red-handed misappropriating TriZetto trade secrets that Infosys originally had access to through non-disclosure and access agreements (NDAAs)," Cognizant said in its response, according to the ET report. Additionally, Cognizant stated that Infosys had prevented an audit that would have confirmed the unauthorised access to confidential information. Also Read | It's a first! Infosys launches cash reward policy for employees who help with hiring; staff to earn Rs 700 per interview Infosys' Allegations of Monopoly Previously, Infosys levelled accusations against Cognizant, claiming it misused its dominant position by curtailing production and raising prices, which allegedly damaged client benefits and stifled market competition. "Monopoly power may be pled directly—through allegations of supra-competitive prices and restricted output—or inferred from the structure and composition of the relevant market," Infosys stated in its court filing. In its defence, Cognizant contested Infosys's monopoly claims, stating that holding 65% market share alone does not establish monopolistic control, and criticised Infosys for failing to establish clear market parameters. This dispute emerges as Indian IT companies encounter diminishing growth rates and heightened rivalry in the American market. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
01-07-2025
- Business
- Time of India
Infosys vs Cognizant: Why two IT giants are fighting over techies in US
In the latest Infosys vs Cognizant fight, Indian IT giant Infosys has named two top Cognizant executives as key figures in what it calls an anti-competitive strategy aimed at blocking its healthcare platform in the US. In a joint court filing, Infosys identified Cognizant's President for Americas Surya Gummadi and Chief People Officer Kathryn Diaz as central to the dispute over talent and trade secrets. The legal battle revolves around TriZetto, a healthcare software platform acquired by Cognizant in 2014, which Infosys says competes with its own product, Helix. Infosys alleges that Cognizant CEO Ravi Kumar S , who once led Helix at Infosys, delayed its launch and later hired key staff to weaken its prospects after joining Cognizant in January 2023. He had resigned from Infosys in October 2022. Infosys vs Cognizant: How the dispute began The conflict began in August 2024, when Cognizant's TriZetto filed a lawsuit against Infosys in a Texas federal court. It alleged that Infosys had misused data obtained under non-disclosure agreements to build a competing product. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Binh Tri Dong B: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Infosys responded with counterclaims, accusing Cognizant of unfairly poaching senior employees and using trade secrets to undermine Helix. In its January 2025 lawsuit, Infosys said these actions were part of a broader strategy to limit competition in the US healthcare IT market. Infosys and Cognizant Targeting top roles In its latest filing, Infosys said Gummadi and Diaz were key to Cognizant's efforts to restrict Helix's market entry. It claimed that the senior-level hiring was not coincidental but part of a structured plan that weakened Infosys's position. Live Events You Might Also Like: ETtech Explainer: Inside the Infosys-Cognizant tussle Infosys also alleged that Ravi Kumar's role in overseeing Helix before his exit gave Cognizant an unfair advantage once he became its CEO. Cognizant's response Cognizant rejected Infosys's counterclaims and asked the court to dismiss them, saying the charges lacked evidence and failed to define the market properly. 'Infosys was caught red-handed misappropriating TriZetto trade secrets that Infosys originally had access to through non-disclosure and access agreements (NDAAs),' Cognizant said in its response. The company also said Infosys had blocked an audit that could have verified the theft of confidential data. You Might Also Like: Infosys names two more Cognizant execs in antitrust case Infosys' monopoly claims Earlier, Infosys accused Cognizant of abusing its market power by reducing output and inflating prices, which it said hurt customer interests and limited competition. 'Monopoly power may be pled directly—through allegations of supra-competitive prices and restricted output—or inferred from the structure and composition of the relevant market,' Infosys stated in its court filing. Cognizant responded that Infosys failed to prove monopoly, arguing that a 65% market share is not sufficient on its own and that Infosys had not clearly defined the market boundaries. You Might Also Like: Cognizant seeks list of Infosys employees in trade secrets case The legal fight comes as Indian IT firms face slowing growth and increasing competition in the US market. With healthcare platforms emerging as a key vertical, the battle over talent and trade secrets may shape future competition between Infosys and Cognizant.
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Business Standard
24-06-2025
- Business
- Business Standard
Infosys accuses Cognizant of poaching key talent to sabotage Helix platform
Just as it seemed the legal stand-off between Infosys Ltd and Cognizant Technology Solutions was easing, tensions have flared again. Infosys has now named two senior Cognizant executives—Chief People Officer Kathryn Diaz and Surya Gummadi, president of Cognizant's Americas division—as being allegedly involved in poaching its key personnel, according to a report by Mint. Infosys claims this has hampered the development of its healthcare platform, Helix. Fresh allegations follow earlier claims against CEO The latest escalation follows Infosys' January 9 court filing, in which it first accused Cognizant CEO Ravi Kumar S, formerly a senior Infosys executive, of deliberately stalling Helix's rollout while negotiating his move to lead the Nasdaq-listed firm. Kumar had been instrumental in the Helix project during his time at Infosys, which he left in October 2022. He assumed his new role at Cognizant in January 2023. Poaching tied to strategic sabotage, says Infosys In a joint report submitted to a Dallas court on June 13, Infosys said that its former president, Ravi Kumar S, had appointed Kathryn Diaz as chief people officer after becoming Cognizant's CEO in 2023. Infosys claimed that while Diaz held this role, Cognizant targeted its Helix platform by planning with and hiring key Infosys executives involved in its development—Shveta Arora between October and December 2023, and Ravi Kuchibhotla in 2024. Arora, now Cognizant's consulting head, and Kuchibhotla, currently chief strategy officer, both previously worked on the Helix platform at Infosys. Arora joined Cognizant in December 2023, and Kuchibhotla followed in August 2024. Infosys Helix is positioned as a rival to Cognizant's TriZetto platform. Cognizant dismisses accusations Cognizant promptly dismissed Infosys' poaching allegations, stating that Diaz was appointed well after Kumar had joined the company. Responding to Mint, Cognizant said that Infosys' continued attempts to mislead did not change the fact that it had been caught red-handed stealing Cognizant's intellectual property. Long-running legal battle over trade secrets The dispute dates back to August last year, when Cognizant first accused Infosys of misappropriating trade secrets related to its healthcare software. Infosys denied the allegations and filed counterclaims, arguing that Cognizant had failed to adequately specify the information allegedly stolen. In its June 13 filing, Infosys maintained that both Gummadi and Diaz possess documents that are relevant to the ongoing case, reinforcing its claims of targeted interference in the Helix project.
