BENGALURU: Xerox’s BPO spinoff Conduent, which filed a $150-million lawsuit against Cognizant for breach of contract in the New York Department of Health’s Medicaid Management Information Systems (NY MMIS) deal, has moved IT outsourcing work from Cognizant to Infosys, sources said.
Conduent had alleged Cognizant breached a contract that was part of the restated master outsourcing services agreement effective October 2012. Sources told TOI that Conduent’s total contract value from NY MMIS was over $500 million. The development, sources said, is testimony to Infosys’s execution engine brought on board to salvage the situation.
Ashok Vemuri-led Conduent had sent a termination notice to Cognizant in the first quarter of 2018 following a lawsuit that alleged breach of contract including the latter’s failure to perform its obligations as subcontractor to Conduent in the NY MMIS contract.
The NY state Department of Health is responsible for the administration of the NY Medicaid Program factoring in several parameters, including eligibility of the recipient and detection of possible fraud and abuse. Cognizant has asserted counterclaims against Conduent seeking damages in excess of $22 million. Conduent has responded to Cognizant’s counterclaims by denying the allegations. Sources told TOI that the contract value for Infosys could be in the range of $45-50 million annually, and the scope of work includes application development and maintenance.
Source: Economic Times