Although iGate is based in Fremont, California, most of its employees are in India.
Mr. Murthy, who was born in India and is 49, joined iGate about a decade ago.
Earlier today I got talking to Phaneesh Murthy, CEO of iGate about that.
Forbes Insights recently considered the topic in a paper sponsored by technology services provider iGate.
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Mr Murthy had "violated iGATE policy" by failing to report this relationship, the firm said in a statement.
Mr. Murthy, who was born in India, joined iGate about a decade ago.
WSJ: Outsourcer Fires Indian Chief Executive Over Relationship
In some respects, Quintant and iGate seemed an unlikely combination because the organizations had different target areas and pay models.
The Times of India quoted him as saying that he had informed iGATE about his "personal relations" with the female employee.
Phaneesh Murthy, the Indian chief executive of outsourcing firm iGATE, has been sacked "for not disclosing a relationship with a subordinate".
He said the complaint of harassment had been made by a woman with whom he had a "personal" relationship, a senior iGate employee.
He said the complaint had been made by a woman who is a senior iGate employee, with whom he said he had a "personal" relationship.
It is, to say the least, not surprising that iGate CEO Phaneesh Murthy believes that outcome-based outsourcing is the way of the future for contracting outside IT help.
In 2008 Murthy became CEO and President of iGate Corporation.
Mr. Murthy, in a call with reporters Tuesday, said the complaint of harassment had been made by a woman with whom he had a relationship, a senior iGate employee.
WSJ: Outsourcer Fires Indian Chief Executive Over Relationship
The investigation showed that Mr Murthy had violated iGate's policy by failing to report his relationship with the employee, although he did not violate iGate's harassment policy, the statement added.
"Mr. Murthy's departure was not related in any way to the company's operational or financial performance, both of which remain strong, " said Ashok Trivedi, co-founder and co-chairman of iGate's board.
"Mr. Murthy's departure was not related in any way to the company's operational or financial performance, both of which remain strong, " said Ashok Trivedi, co-founder of iGate and co-chairman of its board.
Mr. Murthy denied wrongdoing and said he chose to participate in a settlement to ensure the issue didn't distract him from his job at iGate, a subsidiary of which he had joined in 2003.
"The 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 Mr Murthy had with a subordinate employee and a claim of sexual harassment, " an iGate statement said.
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