India’s IT giant Infosys has filed a counterclaim in a Texas federal court against US-based rival Cognizant, alleging anti-competitive practices, intellectual property misuse, and targeted recruitment of senior executives. The case, which marks the latest escalation in a growing rivalry between the two technology heavyweights, could have significant implications for the global IT outsourcing industry.
In its filing, Infosys, India’s second-largest software services provider, accused Cognizant of including restrictive clauses in client contracts designed to block them from awarding IT outsourcing projects to competitors. The Bengaluru-based company further claimed that Cognizant deliberately withheld training on its proprietary software, limiting other firms’ ability to compete effectively.
Infosys also alleged that Cognizant engaged in targeted recruitment of key personnel, including the hiring of former Infosys executive S. Ravi Kumar as CEO in 2023. According to Infosys, this move delayed its ability to develop a competing software platform, Infosys Helix, aimed at the healthcare technology sector.
In response, Cognizant dismissed the accusations, stating: “Cognizant encourages fair competition, but competitors cannot use Cognizant’s IP to unfairly compete, as Infosys has done.” The U.S.-based company pledged to take decisive action to address the allegations.
Infosys has yet to issue a public comment regarding the case.
The counterclaim comes in response to a lawsuit filed last August by Cognizant subsidiary TriZetto. The healthcare technology provider accused Infosys of misappropriating trade secrets related to its flagship software platforms, Facets and QNXT, widely used by healthcare insurers for automating administrative tasks.
TriZetto alleged that Infosys improperly utilised its software to develop a competing product, “Test Cases for Facets,” which it claimed repackaged proprietary data into Infosys’s own offering.
Infosys’s counterclaim seeks three times the damages it alleges to have suffered, along with legal fees and associated costs, though the exact amount has not been disclosed.
The legal battle, filed under the case name ‘Cognizant TriZetto Software Group Inc v. Infosys Ltd’ (Case No. 3:24-cv-02158-X), is being heard in the US District Court for the Northern District of Texas. It represents the latest flashpoint in a broader struggle for dominance in the IT outsourcing and healthcare technology markets.
With Cognizant and Infosys competing to secure major contracts in the lucrative healthcare sector, the case could set a precedent for how intellectual property disputes and anti-competitive practices are addressed in the global software industry.
As both companies defend their positions, the outcome could influence the strategies of IT service providers navigating increasingly competitive and regulated markets.
