Cognizant: IT Industry Leader And A Leadership Poacher?

In 2023, the unexpected removal of ChatGPT CEO Sam Altman was a notable event in the business world, but the year ended on a positive note with the establishment of the ChatGPT company’s new board and the reinstatement of its leader. A parallel C-suite development seems to have ignited in India, steadily gaining momentum with each successive quarter. However, the source of this fervour is not a large and single ouster, but a string of resignations and those affected by it are subjects of debate. Nevertheless, the IT sector in India bears the consequences.

Presently, the Indian IT industry grapples with legal complexities, involving companies issuing legal notices to competitors and filing lawsuits against former employees joining rival firms. Although job transitions are common in the IT landscape, major companies in the space are not willing to accept such moves. This issue is again hogging limelight following the statement of Cognizant’s CEO Ravi Kumar S that his company is the employee’s preferred choice in a Davos interview with a media house.

Neelabh Shukla, Chief Business Officer at Careernet, told BW Businessworld that it is “highly improbable to come across a noncompetence clause among companies.” However, if such a clause does exist, it can be attributed to two main reasons. Firstly, the company genuinely believes that the departing individual could cause harm to their business. Secondly, the company may implement this clause to safeguard its confidentiality.

“Nevertheless, at a junior level, it is not a widely practiced approach to have early-career and mid-career employees sign such agreements,” Shukla added.

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