Infosys and Cognizant Intensify Rivalry: What’s Behind the Escalating Conflict?

The ongoing legal dispute between Infosys and Cognizant has escalated, with both companies accusing each other of anti-competitive practices in the U.S. healthcare sector. Infosys has specifically named two senior Cognizant executives, Surya Gummadi and Kathryn Diaz, as key players in what it claims are efforts to undermine its healthcare platform, Helix. The conflict, which began in August 2024, centers around Cognizant’s acquisition of the TriZetto software platform and allegations of improper recruitment and misuse of confidential information.

Background of the Dispute

The legal battle primarily revolves around TriZetto, a healthcare software platform that Cognizant acquired in 2014. Infosys alleges that Cognizant’s CEO, Ravi Kumar S, who previously led the Helix platform at Infosys, intentionally delayed Helix’s launch before joining Cognizant in January 2023. This delay, according to Infosys, allowed Cognizant to strengthen its competitive position in the market. The conflict intensified when Cognizant filed a lawsuit against Infosys in a Texas federal court, claiming that Infosys had misused confidential information obtained through non-disclosure agreements to create a competing product. In response, Infosys filed counterclaims in January 2025, asserting that Cognizant had engaged in a systematic effort to recruit key personnel and exploit proprietary information to weaken Helix’s market presence.

Infosys’s court documents highlight that Gummadi and Diaz played crucial roles in Cognizant’s strategy to impede Helix’s market entry. The company argues that these appointments were part of a broader scheme to diminish its competitive standing in the healthcare IT sector. Infosys maintains that Cognizant’s actions are not isolated incidents but part of a calculated plan to stifle competition.

Cognizant’s Defense

Cognizant has firmly rejected Infosys’s allegations, seeking their dismissal in court. The company argues that the claims lack substantial evidence and are based on flawed market definitions. Cognizant contends that Infosys has been caught misappropriating TriZetto’s trade secrets, which Infosys accessed through various agreements. Furthermore, Cognizant asserts that Infosys obstructed an audit that could have confirmed unauthorized access to confidential information. This defense underscores Cognizant’s position that it has acted within legal boundaries while accusing Infosys of unethical practices.

Cognizant’s response emphasizes that the allegations made by Infosys are unfounded and mischaracterize the competitive landscape. The company argues that the claims are an attempt to distract from its own business practices and market strategies. As the legal proceedings unfold, both companies are preparing to present their cases, with significant implications for their reputations and market positions.

Infosys’s Monopoly Allegations

In addition to its claims regarding anti-competitive practices, Infosys has accused Cognizant of leveraging its dominant market position to engage in monopolistic behavior. Infosys alleges that Cognizant has restricted production and raised prices, ultimately harming clients and stifling competition in the healthcare IT sector. The company asserts that such monopoly power can be demonstrated through allegations of excessive pricing and limited output, or inferred from the overall market structure.

Cognizant has countered these monopoly claims by stating that simply holding a 65% market share does not equate to monopolistic control. The company criticizes Infosys for failing to define clear market parameters that would substantiate its allegations. This aspect of the dispute highlights the complexities of market competition and the challenges both companies face as they navigate a rapidly evolving industry landscape.

As the legal battle continues, the outcome may significantly impact both companies and the broader healthcare IT sector, which is already grappling with declining growth rates and increasing competition in the U.S. market.


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