Infosys Fires Back at Cognizant, Accusing Rival of Anti-competitive Practices

India's Infosys has filed a counterclaim against Cognizant in a Texas federal court, alleging anti-competitive behavior and executive poaching, Reuters reports. The move comes after Cognizant subsidiary TriZetto sued Infosys last August for alleged trade secret theft.

Infosys accuses Cognizant of using anti-competitive tactics such as contractual clauses that prevent clients from awarding IT services work to competitors and withholding software training. The Indian tech company also claims that Cognizant engaged in targeted recruitment of key senior executives, including its CEO, S Ravi Kumar, who was appointed in 2023. Infosys alleges this recruitment delayed the development of its competing software product called Infosys Helix.

"India's second-largest software company accused Cognizant of anti-competitive practices such as including clauses in contracts that stop clients from awarding IT services work to competitors and refusing them training on its software," Reuters reports.

The counterclaim is a direct response to the August lawsuit filed by Cognizant subsidiary TriZetto, which accuses Infosys of stealing trade secrets related to its healthcare insurance software. TriZetto claims that Infosys misused its software to create "Test Cases for Facets," a product that allegedly repackaged TriZetto's data improperly.

Infosys is seeking triple the amount of damages suffered, plus attorney fees and costs related to the case. The specific amount of damages sought has not yet been disclosed.

"In its complaint the Teaneck, New Jersey-based company said Infosys misused TriZetto's software to create 'Test Cases for Facets,' which improperly repackaged TriZetto's data into an Infosys product," Reuters notes.

Infosys and Cognizant have not yet responded to Reuters' requests for comment. The case, Cognizant TriZetto Software Group Inc v. Infosys Ltd, is pending in the US District Court for the Northern District of Texas.