IT Rivalry Heats Up: Emphasys Accuses Coforge of Contract Breach

Tensions are boiling over in India’s IT services arena as Emphasys takes Coforge to a US court over what it calls blatant violations of employment pacts. The suit centers on the recruitment of a top ex-executive and alleged pilfering of sensitive data tied to client Charles Schwab.

March-dated filings detail Emphasys’s plea to enjoin Coforge from assigning two poached staffers to Schwab projects—work both companies handle. Protecting competitive edges is paramount, says Emphasys, which views the hires as a direct assault on its interests.

Spotlight falls on former VP Brijesh Khergamkar, targeted for a one-year ban from similar roles at Coforge. The firm alleges a pattern of targeting insiders with customer-specific intel for undue gains.

Remedies sought include prohibitory relief, financial reparations, and fee reimbursements. Coforge dismisses the claims as baseless, pledging full defense and eyeing counter-suits.

Contextually, this fits a trend: Infosys fired back at Cognizant in 2024 with counterclaims on executive raids, following Wipro’s 2023 legal pursuit of ex-CFO Jatin Dalal post his Cognizant jump. Industry watchers see these as harbingers of stricter talent retention battles.