Indian IT firms facing more US lawsuits with changing business environment

Now more organisations opt for a legal settlement to save cost, say analysts

Indian information technology (IT) services companies are facing more litigation over alleged breaches of contract and disputes on project implementation timelines.

Delays in promised service delivery were earlier settled between client and service provider. More organisations now opt for a legal settlement to save cost and protect investor sentiment, say analysts.

Last week, Conduent, a US-based business process outsourcing company spun off from Xerox, filed a lawsuit in New York against Cognizant Technology Solutions for breach of contract. It is seeking to recover $150 million (Rs 1,000 crore).

The dispute is over a contract under which Cognizant prepared a Request for Proposal (RFP)