The war between major league IT firms and Cognizant seems to be intensifying as Infosys sent a notice to the firm, soon after IT giant Wipro had sued two of its former executives just days after joining Cognizant.
Wipro filed a lawsuit against former Chief Executive Officer Jatin Dalal and executives Mohd Haque just days after they joined Cognizant. Now, Infosys has also sent a letter to the firm, accusing it of poaching valuable employees.
In its notice, Infosys has accused Cognizant of using “unethical poaching techniques” after a few of its top management executives joined the firm, reported Moneycontrol. Till now, four top executives from Infosys have joined Cognizant.
“Non-compete clauses are not enforceable but this communication to Cognizant was more of a deterrent,” said a source quoted by Moneycontrol. This comes shortly after Cognizant completed its hiring of over 20 people in top management positions.
Poaching wars against Cognizant
Former Infosys executive and current Cognizant CEO Ravi Kumar has till now hired 20 people as executive vice presidents and four vice presidents in the company. A majority of these top managers are from Infosys and Wipro, which is why the two companies are now going after Cognizant.
Over the last year, rival companies have been successful in poaching over 15 top-level executives from Wipro and Infosys. From Infosys, Cognizant has till now hired Anurag Vardhan Sinha, Nageswar Cherukupalli, Narsimha Rao Mannepalli and Shweta Arora for top posts.
Wipro, taking the poaching war to the next level, filed a lawsuit against ex-CFO Jatin Dalal and executive Mohd Haque after the two joined Cognizant. The firm had also recently lost its chief growth officer Stephanie Trautman to a rival company.
Wipro shares struggle amid CFO exit
Wipro shares have been buzzing ever since the CFO left the company to join the rival firm Cognizant. Not only this, but trouble has been mounting on CEO Thierry Delaporte amid rumours of a change in the top post.
Wipro is considering former L&T Infotech CEO Sanjay Jalona to take the top post to boost growth in the company. The IT giant, however, has dismissed this rumour. However, this development has caused a strain on the growth of Wipro share prices.