The escalating poaching dispute in the top-tier IT industry has taken a new turn, with Infosys leveling accusations of unethical poaching practices against Cognizant. This comes on the heels of a similar complaint filed by Wipro against two of its former executives who recently joined Cognizant, a Nasdaq-listed company.
Reports indicate that Infosys, a prominent IT firm, has communicated its grievances to Cognizant through a written complaint after witnessing the departure of several key personnel to join the rival company. While non-compete clauses are generally unenforceable, sources suggest that Infosys aimed to use the communication as a deterrent.
Unnamed sources revealed that the communication from Infosys to Cognizant occurred several weeks ago. The move is part of a broader strategy by Infosys to address the challenge posed by the departure of senior employees to competing firms. The complaint alleges that Cognizant engaged in unethical practices to attract talent from Infosys, a claim that adds fuel to the ongoing poaching dispute in the IT sector.
Cognizant, under the leadership of CEO Ravi Kumar, who is himself an Infosys veteran, has witnessed an influx of talent from rival companies. Since January, Kumar has hired over 20 executive vice presidents and four senior vice presidents, many of whom previously worked at Wipro and Infosys. This recruitment drive has raised concerns among rival firms, leading to legal actions against Cognizant.
Wipro, another major player in the IT industry, recently initiated legal proceedings against two former executives, Mohd Haque and Jatin Dalal, who joined Cognizant. The lawsuits, filed in both the US and India, allege breaches of non-compete clauses and unauthorized sharing of confidential information.
In the case of Jatin Dalal, Wipro initiated legal proceedings at a civil court in Bengaluru, which were subsequently met with a request for arbitration from Dalal. The court is expected to make a decision on whether the matter should be referred to arbitration during a scheduled hearing on January 3. The legal dispute reflects the complexity and intensity of the competition in the IT sector, where firms are fiercely protective of their talent pool and trade secrets.
Regarding Mohd Haque, Wipro contends that he violated a non-compete clause by joining Cognizant before August. The company asserts that Haque, as part of his employment agreement, agreed not to work with Wipro’s competitors for 12 months after the termination of his employment. Additionally, Wipro alleges that Haque possesses confidential information about the company and uploaded some files from his personal email account.
The legal battle between these IT giants underscores the competitive nature of the industry and the strategic significance of retaining key talent. As the disputes unfold, the courts will play a pivotal role in determining the validity of non-compete clauses and the alleged poaching practices, setting important precedents for future talent movements within the sector.
