(Reuters) - The board of iGate Corp, an information technology outsourcing services provider, has sacked Chief Executive Officer Phaneesh Murthy following an investigation into a claim of sexual harassment, the company said in a statement.

The U.S.-listed company, which has bulk of its employees in India, has appointed Gerhard Watzinger as interim chief executive with immediate effect, the iGate statement said.

"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," the statement said.

Murthy was a rising star at Infosys Ltd as California-based global head of sales before leaving in 2002 after a sexual harassment lawsuit against him and the company, which made headlines at the time and was settled out of court.

(Reporting by Sumeet Chatterjee in MUMBAI; Editing by Daniel Magnowski)

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