'Caught Red-Handed': Cognizant accuses Narayana Murthy's Infosys of stealing THIS secret in...

Cognizant Technology Solutions has accused Infosys of stealing trade secrets related to its healthcare software, TriZetto, according to a report by Mint. In a recent filing in a US court, Cognizant claimed that Infosys was "caught red-handed" misusing confidential information that it had originally obtained through non-disclosure agreements (NDAAs).

This legal battle comes over a month after Infosys, India's second-largest IT company, had countersued Cognizant. Infosys had alleged that Cognizant and its CEO, Ravi Kumar, were involved in unfair business practices and had misused sensitive information to slow down the growth of Infosys’ healthcare platform, Helix.

Cognizant's Claims Against Infosys
Cognizant's subsidiary, Cognizant TriZetto, filed the lawsuit in a Texas federal court, accusing Infosys of illegally using its software data. TriZetto’s software, including Facets and QNXT, is widely used by healthcare insurance companies to automate administrative tasks. According to the complaint, Infosys misused TriZetto’s software to develop “Test Cases for Facets,” essentially repackaging TriZetto’s data into its own product.

In its 22-page court response filed on February 7, Cognizant stated that Infosys refused to allow an audit that could have revealed crucial evidence. Cognizant alleged that when confronted, Infosys tried to avoid scrutiny and did not permit an audit, despite the NDAAs allowing such a review. Cognizant has now requested the court to order Infosys to submit all related documents.

Previous Conflict Over Hiring Disputes
This lawsuit is part of a long-standing rivalry between the two IT giants. The conflict initially began when Infosys accused Cognizant of poaching its key executives. This issue escalated when Ravi Kumar, who was previously Infosys' president and deputy COO, joined Cognizant as its CEO.

Infosys was not the only company to raise concerns about Cognizant’s hiring practices. Wipro, another major Indian IT firm, had also filed lawsuits against Cognizant after two of its former executives, Mohd Haque and ex-CFO Jatin Dalal, left Wipro to join Cognizant. However, Wipro and Cognizant reached a settlement in July 2024 regarding the non-compete lawsuit.

With this fresh legal battle over trade secrets, the competition between Infosys and Cognizant appears to be intensifying. The outcome of this case could have significant implications for both companies in the global IT industry.