Infosys, the Bengaluru-based information and technology giant, has announced its intention to "vigorously defend" itself against a trade secrets lawsuit filed by its rival, Cognizant. The legal battle unfolding in a Texas federal court centres on allegations that Infosys misappropriated trade secrets related to Cognizant's healthcare insurance software.&nbsp;&nbsp;

In a statement issued on August 23, 2024, Infosys refuted the claims made by Cognizant's subsidiary, Cognizant TriZetto. The lawsuit accuses Infosys of unlawfully utilizing TriZetto's software, specifically the Facets and QNXT platforms, to create a product known as "Test Cases for Facets." Cognizant argues that Infosys repackaged TriZetto's data and used it to develop new software, breaching confidentiality agreements and legal protections according to a report by PTI.&nbsp;&nbsp;

Response of Infosys to the claims made by Cognizant&nbsp;

Further, Infosys has responded firmly, stating, "Infosys is aware of the lawsuit. We deny all allegations and will defend our position in the court." The company's spokesperson emphasized their commitment to contesting the charges and maintaining their legal and ethical standards.&nbsp;

This lawsuit adds another layer to the intense competition between Infosys and Cognizant, both of which are approaching $20 billion in revenue. The rivalry is further complicated by personal ties; Cognizant's CEO, Ravi Kumar S, previously served at Infosys as president and deputy Chief Operating Officer until October 2022. Additionally, Cognizant recently appointed Rajesh Varrier, another former Infosys executive, as its new India Chairman and Managing Director.&nbsp;

The legal dispute comes on the heels of Infosys's allegations against Cognizant for allegedly poaching key executives, which Infosys documented in a letter last year. This situation mirrors similar actions taken by other Indian IT firms, including Wipro, which also filed lawsuits over executive departures. Wipro reached a settlement with Cognizant earlier this year, resolving a non-compete lawsuit involving a $505,087 payment.&nbsp;

As the Information and Technology industry faces an uncertain demand environment and multi-decade low revenue and profits, the legal skirmishes between these tech giants underscore the competitive tensions within the sector.&nbsp;

Infosys, the Bengaluru-based information and technology giant, has announced its intention to "vigorously defend" itself against a trade secrets lawsuit filed by its rival, Cognizant.

Infosys, the Bengaluru-based information and technology giant, has announced its intention to "vigorously defend" itself against a trade secrets lawsuit filed by its rival, Cognizant. The legal battle unfolding in a Texas federal court centres on allegations that Infosys misappropriated trade secrets related to Cognizant's healthcare insurance software. In a statement issued on August 23, 2024, Infosys refuted the claims made by Cognizant's subsidiary, Cognizant TriZetto. The lawsuit accuses Infosys of unlawfully utilizing TriZetto's software, specifically the Facets and QNXT platforms, to create a product known as "Test Cases for Facets." Cognizant argues that Infosys repackaged TriZetto's data and used it to develop new software, breaching confidentiality agreements and legal protections according to a report by PTI. Response of Infosys to the claims made by Cognizant Further, Infosys has responded firmly, stating, "Infosys is aware of the lawsuit. We deny all allegations and will defend our position in the court." The company's spokesperson emphasized their commitment to contesting the charges and maintaining their legal and ethical standards. This lawsuit adds another layer to the intense competition between Infosys and Cognizant, both of which are approaching $20 billion in revenue. The rivalry is further complicated by personal ties; Cognizant's CEO, Ravi Kumar S, previously served at Infosys as president and deputy Chief Operating Officer until October 2022. Additionally, Cognizant recently appointed Rajesh Varrier, another former Infosys executive, as its new India Chairman and Managing Director. The legal dispute comes on the heels of Infosys's allegations against Cognizant for allegedly poaching key executives, which Infosys documented in a letter last year. This situation mirrors similar actions taken by other Indian IT firms, including Wipro, which also filed lawsuits over executive departures. Wipro reached a settlement with Cognizant earlier this year, resolving a non-compete lawsuit involving a $505,087 payment. As the Information and Technology industry faces an uncertain demand environment and multi-decade low revenue and profits, the legal skirmishes between these tech giants underscore the competitive tensions within the sector.

Infosys to vigorously contest Cognizant's trade secrets lawsuit 

The Income Tax department has frozen Cognizant Technology Solutions Corp`s bank accounts and deposits in Chennai and Mumbai for allegedly evading a dividend distribution tax (DDT), according to a report on Tuesday.

A Cognizant spokesman confirmed the report and said in a statement that a court has instructed the tax department not to take further action pending further hearings.

Cognizant failed to pay the tax of more than Rs 2,500 cr in the 2016-17 financial year, the Hindu newspaper reported, citing officials from the tax department.

Cognizant said it had paid all applicable taxes due on the transaction.

The company's accounts were frozen a week back and it had approached the High Court against the tax department, according to the report.

"Cognizant`s business operations, our associates and our work with clients are not impacted by actions recently attempted by the Indian Income Tax Department," the company said.

A Cognizant spokesman declined to give more details, while tax department officials could not be reached for comment outside regular business hours.

The US-listed IT services have significant operations in India where the majority of its 260,000 employees reside.

Cognizant failed to pay the tax of more than Rs 2,500 cr in the 2016-17 financial year, the Hindu newspaper reported, citing officials from the tax department.

The Income Tax department has frozen Cognizant Technology Solutions Corp`s bank accounts and deposits in Chennai and Mumbai for allegedly evading a dividend distribution tax (DDT), according to a report on Tuesday. A Cognizant spokesman confirmed the report and said in a statement that a court has instructed the tax department not to take further action pending further hearings. Cognizant failed to pay the tax of more than Rs 2,500 cr in the 2016-17 financial year, the Hindu newspaper reported, citing officials from the tax department. Cognizant said it had paid all applicable taxes due on the transaction. The company's accounts were frozen a week back and it had approached the High Court against the tax department, according to the report. "Cognizant`s business operations, our associates and our work with clients are not impacted by actions recently attempted by the Indian Income Tax Department," the company said. A Cognizant spokesman declined to give more details, while tax department officials could not be reached for comment outside regular business hours. The US-listed IT services have significant operations in India where the majority of its 260,000 employees reside.

Income Tax department freezes Cognizant’s bank accounts for non-payment of Rs 2,500 cr tax

Infosys could hand out pink slips to hundreds of mid- and senior-level employees as it carries out its bi-annual performance review amid a challenging business environment. 
 
The development comes at a time when its peers Wipro and Cognizant are taking similar measures to control costs.

Interestingly, Infosys has said it will hire 10,000 Americans in the next two years and open four centres in the US as it seeks to counter moves by the US to tighten visa norms. 
 
&quot;Our performance management process provides for a bi-annual assessment of performance. A continued low feedback on performance could lead to certain performance actions, including separation of an individual and this is done only after feedback,&quot; Infosys spokesperson said in an emailed statement. 
 
The spokesperson did not divulge the number of people to be impacted, although reports peg the number to be in hundreds. 
 
&quot;We do this every year and the numbers could vary every performance cycle,&quot; the spokesperson said, adding that the assessment is based on individual goals and strategic priorities of the company. 
 
Last week, the US-based Cognizant had rolled out a voluntary separation programme for directors, associate VPs and senior VPs, offering them 6-9 months of salary.

Wipro, too, is learnt to have asked about 600 employees to leave as part of its annual &quot;performance appraisal&quot; even as speculations were that the number could go as high as 2,000. 
 
IT companies have been one of the largest recruiters in the country. However, they have warned that increasing automation of processes would lead to reduction in hiring in coming years. 
 
While the outsourcing model has placed India on the global map, increasing scrutiny and rising protectionist sentiment are also posing challenges for the USD 140 billion Indian IT industry. 
 
Companies are now working towards reducing their dependence on work visas and instead hiring more locals to ensure continuity of work for clients, even though it impacts their margins.

(PTI)

Infosys could hand out pink slips to hundreds of mid- and senior-level employees as it carries out its bi-annual performance review

Infosys could hand out pink slips to hundreds of mid- and senior-level employees as it carries out its bi-annual performance review amid a challenging business environment. The development comes at a time when its peers Wipro and Cognizant are taking similar measures to control costs. Interestingly, Infosys has said it will hire 10,000 Americans in the next two years and open four centres in the US as it seeks to counter moves by the US to tighten visa norms. "Our performance management process provides for a bi-annual assessment of performance. A continued low feedback on performance could lead to certain performance actions, including separation of an individual and this is done only after feedback," Infosys spokesperson said in an emailed statement. The spokesperson did not divulge the number of people to be impacted, although reports peg the number to be in hundreds. "We do this every year and the numbers could vary every performance cycle," the spokesperson said, adding that the assessment is based on individual goals and strategic priorities of the company. Last week, the US-based Cognizant had rolled out a voluntary separation programme for directors, associate VPs and senior VPs, offering them 6-9 months of salary. Wipro, too, is learnt to have asked about 600 employees to leave as part of its annual "performance appraisal" even as speculations were that the number could go as high as 2,000. IT companies have been one of the largest recruiters in the country. However, they have warned that increasing automation of processes would lead to reduction in hiring in coming years. While the outsourcing model has placed India on the global map, increasing scrutiny and rising protectionist sentiment are also posing challenges for the USD 140 billion Indian IT industry. Companies are now working towards reducing their dependence on work visas and instead hiring more locals to ensure continuity of work for clients, even though it impacts their margins. (PTI)

After Cognizant, Wipro, now Infosys to lay off employees

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