In the fast-paced world of technology, disputes between industry giants are rare but noteworthy. The recent escalation of tensions among three major players – Cognizant, Infosys, and Wipro – has caught the industry’s attention. This article delves into the roots of the conflict and the current legal battles shaking up India’s IT sector.
The Genesis of the Dispute
The conflict traces back to 2022 when a notable exodus of senior executives from Wipro and Infosys began. Prominent figures like Infosys’ CFO Nilanjan Roy and EVP Rajeev Ranjan, along with Wipro’s CFO Jatin Dalal and Growth Officer Stephanie Trautman, left their positions. Many of these executives found new roles at Cognizant, fueling already simmering tensions.
Cognizant at the Center
Cognizant, a US-based IT and consulting behemoth, finds itself at the heart of the storm. The escalating discord, characterized by legal confrontations and allegations of unethical practices, involves two of India’s tech titans, Wipro and Infosys.
Allegations and Legal Battles
Wipro’s lawsuit focuses on a former executive, Haque, accusing him of transferring sensitive files via personal email after denying plans to join Cognizant. Additionally, Wipro’s ex-CFO Jatin Dalal faces a lawsuit for allegedly breaching a non-compete clause by joining Cognizant, with Wipro demanding Rs 25.15 crore in damages.
Infosys’ Accusations Against Cognizant
Adding to the legal complexities, Infosys sent a legal notice to Cognizant. The accusation? Poaching over 20 top-level employees through questionable means. This move came in response to Cognizant’s aggressive recruitment strategy, which reportedly included hiring four professionals from Infosys.
The Complex Web of Legal Actions
Cognizant’s CEO, a former Infosys executive, has been actively recruiting individuals with ties to Infosys and Wipro. This strategy has prompted both Infosys and Wipro to pursue legal actions against Cognizant, highlighting the intricate web of relationships and legal challenges within the Indian IT landscape.
Conclusion
The dispute reached a new peak when Wipro sued two ex-employees, former CEO Jatin Dalal and Senior VP Mohd Haque, following their move to Cognizant. Haque’s alleged violation of a non-compete clause by joining Cognizant before the end of his agreement has further intensified the legal skirmish. This ongoing saga underscores the competitive nature and the complex dynamics of the global tech industry.
Source: India Today
Shariah Compliance of Cognizant, Wipro & Infosys Stock
Is Cognizant Technology Solutions Corp (CTSH) Stock Halal?
Cognizant Technology Solutions Corp is a major player in IT, consulting, and BPO services. With a significant employee base, its global operations are extensive.
Shariah Compliance Analysis
- Business Activity:
- Doubtful: 16.66%
- Not Halal: 30.65%
- Analysis: The combined value of non-Halal and doubtful sources significantly exceeds the 5% threshold, indicating a strong deviation from Shariah compliance in terms of business activities.
- Interest-bearing Securities and Assets:
- 7.32%
- Analysis: This figure is below the 30% threshold, which is within the acceptable range for Shariah compliance. However, this alone does not make the stock compliant due to the failure in the business activity criterion.
- Interest-bearing Debt:
- 1.74%
- Analysis: This is well within the permissible limit, indicating a low reliance on interest-bearing debt.
Based on the Musaffa Halal Stock Screener report, despite meeting the criteria for interest-bearing securities and debt, the significant proportion of revenue from non-Halal sources makes Cognizant’s stock NOT HALAL.
Is Wipro Ltd (WIPRO.NS) Stock Halal?
Wipro Ltd operates globally in IT, consulting, and outsourcing, with a strong presence in technology development and solutions.
Shariah Compliance Analysis:
- Business Activity:
- Not Halal: 35.29%
- Analysis: This percentage far exceeds the permissible limit, indicating major non-compliance in terms of business activity.
- Interest-bearing Securities and Assets:
- 16.10%
- Analysis: This is below the 30% threshold, which is acceptable for Shariah compliance, but the high percentage in non-Halal business activities overshadows this compliance.
- Interest-bearing Debt:
- 7.75%
- Analysis: Within the acceptable range, showing a relatively lower reliance on interest-based financing.
According to the Musaffa Halal Stock Screener report, Wipro Ltd’s stock is NOT HALAL, primarily because a significant portion of its business activities are categorized as non-Halal.
Is Infosys Ltd (INFY.NS) Stock Halal?
Infosys Ltd is a prominent digital services and consulting firm offering a wide range of business solutions.
Shariah Compliance Analysis:
- Business Activity:
- Not Halal: 30.02%
- Analysis: This significantly breaches the 5% limit for non-Halal income, indicating non-compliance in this aspect.
- Interest-bearing Securities and Assets:
- 5.45%
- Analysis: Within permissible limits, suggesting adequate management of interest-bearing securities and assets in line with Shariah principles.
- Interest-bearing Debt:
- 1.41%
- Analysis: This is well below the threshold, reflecting low dependence on interest-based debt.
According to Musaffa’s halal stock screener report, despite conforming to the thresholds for interest-bearing securities, assets, and debt, Infosys Ltd’s stock is NOT HALAL due to the high percentage of non-Halal business activities.
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