In a high-stakes ‘poaching war’ among major Indian IT firms, Cognizant finds itself at the center of legal battles with Infosys and Wipro. The escalating drama involves legal notices, accusations of unethical practices, and lawsuits against ex-employees.
Background: Mass Exits and Brewing Tensions
The roots of this ‘poaching war’ trace back to mass exits from Infosys and Wipro, two of India’s prominent IT firms, since 2022. Notable senior executives from both companies, including CFOs and top-level executives, left, creating a landscape ripe for intense competition among IT giants. Many of these departing executives found a new home in Cognizant, intensifying the rivalry.
Wipro’s Lawsuit and Non-Compete Clause Violation
This week, tensions reached a new level when Wipro initiated legal action against its former CEO, Jatin Dalal, and high-ranking executive Mohd Haque, who joined Cognizant. The lawsuit centers on Haque’s alleged violation of the non-compete clause in his employment contract. Wipro accuses Haque of breaching this clause by joining Cognizant before the anticipated expiration of his non-compete agreement, initially set to end on August 1, 2023.
The lawsuit further alleges that Haque transferred confidential information via his personal Gmail account, including files uploaded before his formal resignation. Wipro contends that Haque misled the company about his intentions and had files containing sensitive information sent to his personal email account.
Infosys’ Official Notice and Unethical Poaching Accusations
Following Wipro’s legal action, Infosys sent an official notice to Cognizant, accusing it of ‘unethical poaching.’ Infosys contends that Cognizant employed questionable poaching techniques after recruiting over 20 individuals for top management positions, including four executives reportedly from Infosys.
Described as a warning, the notice emphasizes concerns about non-compete rules and serves as an indication of the escalating tensions between the two IT giants.
