Indian IT firms face more lawsuits with changing business environment

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Indian information technology (IT) services firms are seeing more litigation against breach of contract and disputes related to faster project implementations to transform businesses  in the recent past. Though delay in promised service delivery were sorted out amicably between the client and services providers earlier, now more organisations opt for a legal settlement to save cost and protect investor sentiment, say analysts. 

Last week, Conduent Inc, a US-based business process outsourcing company which was spun off from Xerox, filed a lawsuit against Cognizant Technology Solution for breach of contract in the Supreme Court of the State of New York County. The former iGate chief executive and former Infosys executive Ashok Vemuri-led firm tried to recover $150 million (Rs 998 crore) through a litigation filed in New York. 

The dispute is related to a contract under which Cognizant prepared a Request for Proposal (RFP) for Conduent to replace a legacy Medicaid Management Information Systems (MMIS) with a new MMIS called Health Enterprise. Conduent hired Cognizant as a subcontractor for its implementation. 
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