In the ongoing skirmish within India's Information Technology (IT) domain, major Indian IT enterprises are pointing fingers at global competitor Cognizant, alleging the use of dubious tactics in enticing their workforce. This unfolding narrative occurs amid Indian IT firms' struggle to address soaring attrition rates among senior-level personnel.
Reports indicate that Infosys, the second-largest IT services company in India, has taken action by sending a formal written communication to Cognizant concerning the departure of several of its senior leaders who migrated to the global firm. Concurrently, Wipro has initiated legal proceedings against two former employees, CFO Jatin Dalal and Mohd Haque, filing legal suits against them after they transition to Cognizant.
The focus has now shifted towards Cognizant, particularly after the communication sent by Infosys. As per sources cited in a moneycontrol.com report, Infosys aimed to dissuade Cognizant from pursuing such recruitment strategies, emphasizing that non-compete clauses may not always be enforceable.
The tension between Cognizant and Indian IT giants has escalated noticeably, with revelations suggesting that Cognizant recruited over 20 executive vice presidents and four senior vice presidents following the appointment of Ravi Kumar, an Infosys veteran, as its CEO in January 2023. A considerable number of these executives made the switch from either Infosys or Wipro.
Key figures, including Mohd Haque and Jatin Dalal from Wipro, along with Anurag Vardhan Sinha, Nageswar Cherukupalli, Narasimha Rao Mannepalli, and Shweta Arora from Infosys, have joined Cognizant.
Reports indicate that Infosys and Wipro have witnessed the exit of roughly 7-8 and nearly 10 top-tier leaders, respectively, in the ongoing calendar year. A significant portion of these executives has opted for roles in rival companies within the industry.
The escalating concern among Indian IT companies stems from two core factors. Firstly, the challenging business landscape for IT firms poses a significant hurdle. Secondly, the departure of senior management, deemed as valuable assets due to their access to critical information, exacerbates the apprehension.
While non-compete clauses aim to safeguard the interests of former employers, legal experts suggest that potential loopholes might enable individuals to navigate around these constraints. As the tussle intensifies between Indian IT firms and Cognizant, it mirrors the tense atmosphere within the broader sector, where companies fiercely vie for a greater market share.
