From legal notices to lawsuits: What went wrong between Cognizant, Infosys, and Wipro
In the tech world, clashes between major players aren't common, but when they happen, it's big news. So, what's causing the rift between Cognizant, Infosys, and Wipro?
It all began with a wave of senior executives leaving Wipro and Infosys starting in 2022. Key figures like Infosys' CFO Nilanjan Roy and EVP Rajeev Ranjan, and Wipro's CFO Jatin Dalal and Growth Officer Stephanie Trautman exited, with many landing roles at Cognizant. This mass migration aggravated tensions simmering for months.
At the centre of this storm is Cognizant, a US-based IT and consulting giant. The discord, marked by legal battles and claims of unethical conduct, escalated recently with legal actions involving Wipro and Infosys, two of India's tech titans.
Wipro's complaint alleges that, upon leaving, an ex-executive, Haque, transferred sensitive files through personal email, despite denying intentions to join Cognizant. Haque, who held significant leadership roles at Wipro, faces accusations of moving confidential information.
Meanwhile, Wipro's ex-CFO, Jatin Dalal, faces a lawsuit claiming he breached a non-compete clause by joining Cognizant within a year. Wipro demands Rs 25.15 crore in damages, adding to the legal tangle.
Infosys joined the fray, sending an official notice to Cognizant, accusing them of poaching over 20 top-level employees through questionable methods. This move followed Cognizant's hiring spree, bringing in several high-profile professionals, reportedly including four from Infosys.
The situation gets murkier as Cognizant's CEO, a former Infosys executive, brings in individuals linked to Infosys and Wipro. Both Infosys and Wipro are now pursuing legal actions against Cognizant, revealing the complexity of ties and legal battles within India's IT landscape.
The recent escalation began when Wipro sued two ex-employees, former CEO Jatin Dalal and Senior VP Mohd Haque, after they joined Cognizant. Haque's alleged breach of a non-compete clause by joining Cognizant before the expiration of his agreement triggered legal action.
