Outsourcing company iGate Corp has sacked its Chief Executive Phaneesh Murthy for not disclosing a relationship with a subordinate. Murthy was replaced with immediate effect by interim CEO Gerhard Watzinger, iGate said. It is the second time that Murthy has been forced to clean out his desk after allegations of sexual misconduct.

He was forced to quit India's second biggest software exporter Infosys in 2002 following a sexual harassment lawsuit, which was settled out of court. iGate and other smaller IT outsourcers compete with Indian heavyweights such as Tata Consultancy Services, Wipro and Infosys on price to win market share.

In a statement the company said that its board's decision was made as a result of an investigation by outside legal counsel, engaged by the board, of the facts and circumstances surrounding a relationship Murthy had with a subordinate employee and a claim of sexual harassment. Murthy had violated iGate's policy by failing to report his relationship with the employee, the statement said. But it added that Murthy did not violate iGate's harassment policy.