Healthcare vertical keeping heart rates up at Indian IT services companies
Cognizant TriZetto, a unit of Cognizant Technology Solutions, sued Infosys in a US court, accusing the Indian IT service firm of stealing trade secrets related to its healthcare insurance software.
This was the latest of developments in the healthcare verticals of India-centric IT services firms that have grabbed headlines in recent months, for positive or negative reasons.
In November last year, the US Supreme Court rejected Tata Consultancy Services' appeal against a District Court of Wisconsin verdict, charging $140 million in punitive damages in a case filed by Epic Systems. The US healthcare software company had accused TCS of stealing its intellectual property when the Indian firm was contracted to implement its software.
A month later, Bengaluru-based Wipro initiated legal action against Mohd Haque, the company’s former senior vice president and head of healthcare and medical devices for the Americas, after he joined Cognizant. Wipro demanded a jury trial for his alleged breach of non-compete clauses by joining a direct competitor.
IT companies are also witnessing improved performance at their healthcare verticals.
For the first time in Cognizant’s history, its healthcare vertical revenue topped banking financial services and insurance (BFSI) in the December quarter of 2023 — $1,396 million against $1,395 million. Today, healthcare contributes about 30.1% to the US-based company’s revenue, while financial services accounts for 29.8%.
At Wipro, health was the only vertical among its seven that posted
