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CSC case just to sour Transamerica deal: Tata Consultancy Services to U.S. court

TCS’ latest move comes after CSC accused India’s largest IT services company of using the source code of its software to build an insurance platform for Transamerica.

, ET Bureau|
May 02, 2019, 07.50 AM IST
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CSC’s parent company DXC Technology and TCS declined to comment as the matter is pending litigation.
BENGALURU: Indian software major Tata Consultancy Services has told a US court that technology firm CSC was attempting to disrupt its $2-billion deal with insurer Transamerica, and that a trade secret lawsuit filed against it by CSC last week lacked evidence.

TCS’ latest move comes after CSC accused India’s largest IT services company of using the source code of its software to build an insurance platform for Transamerica.

TCS’ deal with Transamerica involves migrating the company from CSC’s legacy software to the Indian company’s BaNCS platform. CSC knew TCS had access to the source code of Vantage — a CSC insurance product — for over a year, the Indian IT leader said, adding teams from both companies work together in the same office to support TransAmerica.

Vantage was licensed to Transamerica by CSC, with the insurer’s employees having access to the software’s code to operate the system. “Likely upset about Transamerica’s decision to transition from Vantage to TCS’ BaNCS Platform, CSC appears determined to disrupt the legitimate business relationship between Transamerica and TCS,” the Indian company said in its brief to a Texas court earlier this week, responding to a temporary restraining order that CSC had sought in a separate filing. ET has a copy of the brief.

CSC’s parent company DXC Technology and TCS declined to comment as the matter is pending litigation, while TransAmerica said it “will monitor the litigation.”

“The TCS BaNCS Software Development Team and the Transamerica Vantage Team are kept completely separate, both organisationally and physically, to ensure compliance with TCS’ obligations under its confidentiality agreements and the law,” the brief said.

TCS said the BaNCS development team is based in Kolkata.

In its brief, TCS also pointed out that CSC’s parent DXC Technology had sent a letter to Transamerica and TCS in June 2018, demanding that Transamerica and TCS “cease and desist” from proceeding with the transition of services from DXC/CSC to TCS as it would involve TCS gaining access to DXC/CSC’s “processes, materials and software.” ET has a copy of the letters.

“Yet, CSC did not file suit at that time, or in the subsequent ten months, alleging that this conduct was illegal or improper or that TCS was misappropriating its trade secrets. Nor did it communicate in any manner with TCS prior to its filing of this action,” TCS said in its brief.

TransAmerica, which disputed CSC’s claims at that time, continued with its plans, while TCS took onboard over 2,000 of the insurer’s employees as part of the deal, the domestic software company said.

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