Infosys, Wipro sue Cognizant over alleged talent poaching
BENGALURU, INDIA — IT giants Infosys and Wipro have tightened their stance against rival Cognizant by sending formal notices to some departed executives for alleged unethical poaching.
This comes amidst intensifying competition for talent and large deals in a slowing market.
Infosys accused Cognizant of using “unethical poaching techniques” to hire over 20 of its top executives. This was after Cognizant appointed former Infosys executive Ravi Kumar S as its new CEO earlier this year. Under Kumar’s leadership, Cognizant has aggressively hired talent from competitors, including over 20 executive VPs and 4 senior VPs from Infosys alone.
Similarly, Wipro filed lawsuits in India and the United States against its former Chief Financial Officer (CFO) Jatin Dalal and senior executive Mohd Haque, shortly after they joined Cognizant. Wipro alleged a breach of non-compete clauses and accused the executives of transferring confidential data before exiting.
Analysts see the legal face-off as part of a larger war for talent amid rising attrition rates across top IT services firms. Wipro and Infosys have seen several senior-level departures in 2022, with many executives moving to competitors.
The escalating legal drama indicates firms are now enforcing non-competes more strictly to curb senior talent loss. However, some experts argue that overly restrictive hiring practices could discourage employee mobility and knowledge sharing in the long run.
