In the battle of IT giants between Cognizant and Infosys has reached its peak, after Cognizant slapped a heavy lawsuit on its rival. The two companies are embroiled in a court dispute in the USA, on the one side, the company Cognizant claims that Infosys has used their trade secrets that are tied to their digital health software, TriZetto. News releases suggest that this situation has been reported across several English media channels.
Cognizant's Allegations Against Infosys
Cognizant has also accused Infosys of taking advantage of trade secrets through Non-Disclosure and Access Agreements (NDAAs) and unauthorized disclosure which IPO had agreed to. In addition, Cognizant has stated that the audit Infosys refused to do concerning the issues mentioned above should be done as soon as possible.
Legal Proceedings in the US
Cognizant approached a US court in August 2024 with a case alleging theft of TriZetto-related proprietary information by Infosys. Infosys denied the accusation. Cognizant has claimed that its healthcare solutions were out in the public domain, but Infosys countered the allegations by introducing the name of Ravikumar, a former Infosys executive.
Ravikumar, former President of Infosys, resigned from the company in October 2022. He went on to become the CEO at Cognizant in January 2023. Infosys has accused Ravikumar of having halted the rollout of healthcare software while working at Infosys and then negotiating his move to Cognizant.
Competition in the healthcare sector
Both Cognizant and Infosys are major competitors in the healthcare services industry. Infosys generates approximately 7.5% of its total revenue from its life sciences division, which reflects how central this business is to the company's business model. This courtroom battle has broader implications for both of the firms, particularly in the highly competitive sector of healthcare IT.
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