In recent years, the Indian IT industry has witnessed a surge in competition, with companies fiercely vying for the top spot in the market. However, this race has taken a negative turn with the emergence of anti-competitive conduct from one of the leading companies, Cognizant, causing significant financial harm to its competitor, Infosys.
Cognizant, a multinational corporation that provides IT services, consulting, and business process outsourcing, has been accused of indulging in anti-competitive practices that have impacted the growth and profitability of Infosys. The American company has been using unethical means to gain an edge over its competitors, specifically targeting Infosys in its strategy.
One of the primary tactics employed by Cognizant has been the poaching of employees from Infosys. Cognizant has been luring highly skilled professionals from Infosys with lucrative offers and higher salaries, leading to a drain of talent from Infosys. This not only affects the performance and quality of work at Infosys but also results in higher employee turnover and recruitment costs for the company. Furthermore, by poaching from a direct competitor, Cognizant’s actions have been viewed as an attempt to create a monopoly in the industry, using its financial muscle to stifle its competitors.
It is also alleged that Cognizant has been involved in sabotaging contract negotiations between Infosys and its clients. In an attempt to secure clients and projects for itself, Cognizant has resorted to maligning Infosys and spreading false information about its capabilities and reputation. This has not only damaged the image of Infosys but has also resulted in the loss of potential business opportunities, leading to a decline in revenue for the company.
Moreover, Cognizant has been accused of indulging in predatory pricing, i.e., offering its services at a significantly lower price than its competitors. By undercutting the prices of Infosys, Cognizant has not only gained a competitive advantage but has also forced Infosys to reduce its rates to remain in the market. This has led to a decline in the profit margins for Infosys, making it difficult for the company to sustain itself in the long run.
The impact of Cognizant’s anti-competitive conduct is not limited to Infosys alone. It has also adversely affected the Indian IT industry as a whole. With Cognizant setting the trend of poaching employees and engaging in predatory pricing, other companies have been forced to follow suit to remain in the competition. This has not only led to a talent drain within the industry but has also resulted in a downward spiral of prices, making it difficult for companies to make profits.
The Indian government, recognizing the severity of the issue, has taken note of Cognizant’s anti-competitive practices and has initiated an investigation against the company. In a recent press conference, Union Minister Ravi Shankar Prasad stated, “The government will not tolerate any anti-competitive conduct in the IT industry. We will take strict action against any company found guilty of such practices.”
It is commendable to see the government taking swift action against Cognizant, showing its commitment to promoting fair competition and protecting the interests of its companies. It is high time that Cognizant is held accountable for its actions and brought to justice for the financial harm it has caused to Infosys and the Indian IT industry.
As a market leader, Cognizant must adopt ethical and fair means to compete with other companies rather than resorting to underhanded tactics. Being a part of the Indian IT industry, it is the responsibility of companies like Cognizant to uphold the reputation of the industry and contribute to its growth and success.
In conclusion, Cognizant’s anti-competitive conduct has caused significant financial harm to Infosys, affecting its growth and reputation in the market. It is imperative for companies to compete fairly and ethically, and the government must take necessary actions to prevent such practices from continuing in the future. It is time for Cognizant to recognize the detrimental impact of its actions and take corrective measures to rectify the damage caused. Only then can we expect a healthy and sustainable growth of the Indian IT industry.
