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News » Infosys vs Cognizant: Healthcare IT battle escalates in U.S. courts

Infosys vs Cognizant: Healthcare IT battle escalates in U.S. courts

Infosys vs Cognizant: Healthcare IT battle escalates in U.S. courts
Photo from Fortune India

BENGALURU, INDIA and NEW JERSEY, UNITED STATES — A bitter legal dispute between Infosys and Cognizant has intensified, with Infosys accusing its rival of an anti-competitive practices to block its healthcare platform in the United States. 

The escalating legal battle between the two companies marks the latest chapter in a long-standing feud, reigniting tensions. The battle, centered on talent poaching and alleged misuse of trade secrets, could reshape competition in the lucrative healthcare IT sector as both firms vie for dominance.

High-stakes talent war between IT giants

Infosys has named Cognizant President for Americas, Surya Gummadi, and Chief People Officer, Kathryn Diaz, as key figures in what it claims is a deliberate strategy to weaken its healthcare platform, Helix. 

The company accuses Cognizant Chief Executive Officer (CEO) Ravi Kumar S., who was previously in charge of Helix at Infosys, of delaying the launch of the firm and subsequently resigning in October 2022 to join Cognizant and hire personnel to sabotage its chances in January 2023.

Infosys concludes that it is not a coincidence, but rather a systematic move to eliminate competition. However, Cognizant has rejected these allegations, citing that Infosys lacks evidence, and stating that its hiring processes are legal. 

Clash over healthcare IT platforms

The legal battle centered on competing healthcare software platforms—Cognizant’s TriZetto, acquired in 2014, and Infosys’s Helix

In August 2024, TriZetto filed a lawsuit against Infosys in a Texas federal court, alleging that the company had abused confidential information it had received on a non-disclosure basis (NDA). 

Infosys responded with allegations that Cognizant had engaged in anti-competitive business practices, specifically by recruiting its senior employees and using business secrets to hinder Helix’s market entry.

Cognizant argues that Infosys was caught red-handed stealing TriZetto’s trade secrets and thwarted an audit to conceal the theft. 

What the case demonstrates is that a great deal is at stake in healthcare IT, as proprietary platforms generate billions of dollars in revenue, and falling behind means losing a competitive advantage with long-term effects.

Monopoly allegations and market power

Infosys has also accused Cognizant of monopoly abuse, alleging that it engaged in limiting output and increasing prices at the expense of customers and competitors. 

“Monopoly power may be pled directly—through allegations of supra-competitive prices and restricted output—or inferred from the structure and composition of the relevant market,” Infosys stated in its court filing,” Infosys stated in a court filing.

Cognizant has been arguing that a mere market share of 65% does not constitute a monopoly and that Infosys had not adequately determined the market boundaries. 

Healthcare IT platforms at a crossroad

An aspect that the case also highlights is the growing importance of healthcare IT as a primary source of revenue for outsourcing companies. 

As digital health popularity grows, the conflict between companies in terms of intellectual property and market control is likely to intensify.

IT giants’ Cognizant and Infosys, ranked 7th and 11th, respectively, on the OA500 2025 list of top outsourcing firms, and with both firms among the world’s top outsourcing players, the case must be closely monitored for its potential ripple effects on market dynamics and corporate strategies.

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