Why Cognizant Sues Indian Tech Giant Infosys in US Court; Know the Reason Here

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Cognizant vs Infosys In US Court: US-based software company Cognizant TriZetto has filed a lawsuit against Indian tech giant Infosys in a Texas federal court, accusing Infosys of stealing confidential information related to its healthcare insurance software.

This comes 8 months after Infosys sent a missive to Cognizant accusing the US-based IT firm of unfair employee poaching. However, Infosys has denied all allegations levelled by Teaneck-based rival Cognizant's subsidiary Cognizant TriZetto in Texas federal court. 

Cognizant, headquartered in New Jersey and with 70% of its employees in India, claims that Infosys unlawfully extracted data from its databases and used this information to develop and market competing software. 

Cognizant's software includes TriZetto's Facets and QNXT, used by healthcare insurance companies to automate administrative tasks. According to the complaint by Cognizant, Infosys misused TriZetto's software to create "Test Cases for Facets," which improperly repackaged TriZetto's data into an Infosys product. Notably, the companies are locked in a closed combat even in the market with both companies approaching $20 billion in revenue. 

Cognizant has requested the court to award an unspecified amount in monetary damages and to issue an order directing Infosys to cease the misuse of its trade secrets. Moreover, you will be surprised to know that the Cognizant's Chief Executive Officer Ravi Kumar S is an Infosys veteran, having served as its president and deputy Chief Operating Officer for over nine years, with the stint ending in October 2022. 

Just two before this saga, Cognizant appointed Rajesh Varrier to replace former Cognizant India Chairman and Managing Director Rajesh Nambiar, who will assume the role from October 1, 2024.