Infosys vs Cognizant fight gets uglier! Why are the two big IT firms battling it out in the US? Explained

The authorized battle revolves round TriZetto, a healthcare software program 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 staff in the US? In an ongoing authorized dispute between the two IT firms, Infosys has recognized two senior Cognizant officers, Americas President Surya Gummadi and Chief People Officer Kathryn Diaz, as major figures in what it describes as anti-competitive practices focusing on its US healthcare platform, in response to an ET report. The allegations have been detailed in a joint court docket submission, highlighting issues over aggressive practices and mental property.

Infosys vs Cognizant: What’s the fight about?

Regarding management positions, Infosys’s current court docket paperwork declare that Gummadi and Diaz performed important roles in Cognizant’s technique to hinder Helix’s market introduction. The firm asserted that these senior appointments have been strategically deliberate to decrease Infosys’s market place.Also Read | ‘Maintain work-life stability’: Infosys asks employees to not work extra time; Narayana Murthy had spoken of 70-hour work week conceptAdditionally, Infosys claimed that Ravi Kumar’s earlier oversight of Helix offered Cognizant with unwarranted advantages after his transition to the CEO place.

What Cognizant Has Said

Cognizant dismissed Infosys’s counter allegations and sought their dismissal in court docket, stating that the accusations have been unsupported by proof 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 stated in its response, in response to the ET report.Additionally, Cognizant said that Infosys had prevented an audit that may have confirmed the unauthorised entry to confidential data.Also Read | It’s a primary! Infosys launches money reward coverage for workers who assist with hiring; employees to earn Rs 700 per interview

Infosys’ Allegations of Monopoly

Previously, Infosys levelled accusations in opposition to Cognizant, claiming it misused its dominant place by curbing manufacturing and elevating costs, which allegedly broken shopper advantages and stifled market competitors.“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 said in its court docket submitting.In its defence, Cognizant contested Infosys’s monopoly claims, stating that holding 65% market share alone doesn’t set up monopolistic management, and criticised Infosys for failing to determine clear market parameters.This dispute emerges as Indian IT firms encounter diminishing progress charges and heightened rivalry in the American market.