India's Infosys accuses rival Cognizant of anti-competitive practices

Published 01/10/2025, 08:58 AM
Updated 01/10/2025, 12:30 PM
© Reuters. FILE PHOTO: Figurines with computers and smartphones are seen in front of Infosys logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
CTSH
-
INFY
-

BENGALURU (Reuters) -India's Infosys (NS:INFY) filed a counterclaim against rival Cognizant (NASDAQ:CTSH) in a Texas federal court on Thursday, accusing the U.S.-based company of engaging in anti-competitive practices and poaching key executives.

India's second-largest software company accused Cognizant of anti-competitive practices including clauses in contracts that stop clients from awarding IT services work to competitors and refusing them training on its software.

The Bengaluru-based company also said Cognizant indulged in targeted recruitment of key senior executives, including appointing S Ravi Kumar as its CEO in 2023, delaying its ability to develop a competing software product called Infosys Helix.

Cognizant said it will take decisive action to address any allegations. "Cognizant encourages competition, but competitors cannot use Cognizant's IP to unfairly compete, as Infosys has done," the company said in a statement.

Infosys did not immediately respond to a Reuters request for a comment.

The counterclaim comes after Cognizant subsidiary TriZetto (AXPAST.UL) sued Infosys last August, accusing the Indian tech major of stealing trade secrets related to its healthcare insurance software.

TriZetto's Facets and QNXT are used by healthcare insurance companies to automate administrative tasks.

In its complaint the Teaneck, New Jersey-based company said Infosys misused TriZetto's software to create "Test Cases for Facets", which improperly repackaged TriZetto's data into an Infosys product.

© Reuters. FILE PHOTO: Figurines with computers and smartphones are seen in front of Infosys logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Infosys has sought three times its damages suffered as well as the attorney fees and costs related to the case. The quantum of damages was not disclosed in the filing.

The case is Cognizant TriZetto Software (ETR:SOWGn) Group Inc v. Infosys Ltd, U.S. District Court for the Northern District of Texas, No. 3:24-cv-02158-X.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.