TriZetto, a subsidiary of American software giant Cognizant, has filed a lawsuit against Indian IT giant Infosys in a Texas court. The American company has accused the Indian IT giant of misusing trade secrets related to health insurance software. The American company claims that Infosys has illegally accessed Cognizant’s database to develop competitive products.
American software giant Cognizant has not officially commented on this, but Infosys has strongly denied the allegations. Infosys said that we are aware of the lawsuit. We deny these allegations and will present our side in the court.
What did Cognizant allege
Cognizant’s software is developed by TriZetto. This includes the Facets and QNXT platforms, which are used by health insurance companies to simplify administrative processes. According to the lawsuit, Infosys is accused of misusing TriZetto’s software to create a competitive product called ‘Test Cases for Facets’. In this, TriZetto data was reused.
Now what is the American company demanding from the court?
The US company has further accused Infosys in the lawsuit of developing software to extract confidential information and trade secret data from QNXT. Now Cognizant is demanding compensation for financial losses and action to prevent Infosys from further exploiting its confidential data. This legal action has been taken after a period of increasing tension between the two companies.
The dispute between Infosys and Cognizant is an old one
It is worth noting that a week ago, Cognizant appointed former Infosys executive Rajesh Warrier as its new CMD. Cognizant’s current CEO Ravi Kumar also has deep connections in Infosys. Increasing the competition further, Infosys had accused Cognizant of unfairly recruiting employees in a dispute that took place eight months ago.