Why are Cognizant and Infosys suing each other?
• TriZetto, a subsidiary of Cognizant, sued Infosys in August 2024 for allegedly stealing data from their proprietary software.
• Infosys denied the allegations and filed a countersuit against Cognizant CEO Ravi Kumar S, alleging that Infosys deliberately delayed the launch of its health platform, Helix.
• Infosys alleged that Infosys used the misappropriated data to build their own flagship healthcare software, Infosys Helix.
• Infosys claimed that Infosys copied TriZetto’s software and developed software to extract confidential data from QNXT.
• Infosys’ countersuit revealed its anger at Kumar’s alleged disregard for requests for additional engineering support for Infosys Helix.
• The lawsuit alleged that Infosys’ actions artificially raised entry barriers, adversely impacting competition in the U.S. healthcare sector and increasing costs for the public.
• The case highlights the need for clear guidelines on what is permissible in executive transitions, including a cooling period and anti-compete clauses in contracts.
• The case could potentially establish a precedent for similar situations in the Indian IT sector.