Narayan AmmachchiCognizant is clashing in court with Indian IT powerhouse Infosys.
Cognizant filed a lawsuit against Infosys in a Texas federal court, accusing the company of stealing trade secrets from its subsidiary, TriZetto, to create competing software.
Before the lawsuit, both companies had signed non-disclosure and access agreements (NDAAs) which allowed them to share critical information between each other in order to benefit mutual clients.
Cognizant alleges that Infosys overstepped the boundaries set in the agreement, exctracing sensitive trade information from company databases in order to develop a product that mirrors one already offered by Cognizant.
Infosys has strongly denied the allegations and stated its intention to defend itself in court.
Cognizant is seeking an unspecified amount in damages and is pushing for an injunction to prevent Infosys from further exploiting its proprietary information.
This legal ckash intensifies the already fraught relationship between the two companies, marked by recent disputes over employee poaching.
Just last month, Cognizant appointed Rajesh Warrier, a former Infosys executive, as its new Chairman and Managing Director. Cognizant’s current CEO, Ravi Kumar, worked at Infosys for almost two decades.
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