Conduent Sues Cognizant for Over $150 Million in Damages

Conduent has accused Cognizant of neglecting to practice the most ‘rudimentary’ software development processes.

Cognizant

Conduent, the BPO offshoot of U.S. printing giant Xerox, has sued technology services provider Cognizant over accusations that the latter breached contract.

In a lawsuit filed with a court in New York, Conduent, is seeking more than $150 million in compensation. Conduent has accused Cognizant of neglecting to practice the most ‘rudimentary’ software development processes.

“Cognizant’s chronic and gross mismanagement, failure to perform, and neglect to follow even the most rudimentary software development processes belie an organisation that claims the highest levels of professional certifications,” reads the lawsuit.

The dispute stems from a past contract designed to set up an advanced electronic processing system for the State of New York to process Mediclaid claims. Conduent, now headed by former Infosys executive Ashok Vemuri, was the principal contractor, while Cognizant was a subcontractor.

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Cognizant has stated that the allegation has no merit, according to India’s business daily The Economic Times. The professional services firm has even vowed to defend the case vigorously and counterclaim for damages.

Conduent says it paid Cognizant in excess of $680 million after it wrapped up the partnership deal in 2012, but Cognizant says it was not paid for all the work it carried out as a subcontractor.

Such lawsuits are not rare: U.S. brewer MillerCoors has recently brought a lawsuit against HCL Technologies, accusing the professional services firm of failing to meet the project deadline.

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