Wipro enforces non-compete clause on departing executives
BENGALURU, INDIA — Wipro has enforced non-compete clauses preventing senior executives from joining 10 major IT competitors for 12 months after leaving the company. This came to light through a lawsuit against former Chief Financial Officer (CFO) Jatin Dalal for joining rival Cognizant in December 2023.
The non-compete clause explicitly lists Accenture, Capgemini, Cognizant, Deloitte, DXC, HCL, IBM, Infosys, TCS, and Tech Mahindra as restricted companies. As per the lawsuit, Dalal’s high-level role gave him access to sensitive business information, making his swift transition to a direct competitor concerning.
Wipro is seeking over ₹25 crore (US$3 million) in damages from Dalal for breach of contract. Former SVP Mohd Haque faces similar legal action for joining Cognizant. While Wipro saw many senior exits last year, only Dalal and Haque were sued, indicating the gravity of such non-compete violations.
This spotlight on non-compete clauses reflects intensifying efforts by IT majors to safeguard proprietary data and prevent talent drain to rivals, especially amid fierce competition for large deals.
However, enforceability remains contentious, given India’s employee-friendly laws. The outcome of Wipro’s lawsuits could influence wider industry norms.
