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Reverse Racism? TCS Sued By Ex-Employee for Bias Against Americans In America

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TCS Court Lawsuit

After Business Process Outsourcing became a hit in India and US firms started outsourcing more and more jobs, a new reality hit the industry: reverse outsourcing. Some outsourcing companies became so big that they started to reverse outsource projects to the same country which initially outsourced them the jobs. Hence, companies like TCS and Wipro started opening offices in USA, for delivering projects by USA companies.

The only difference was that instead of Americans, they mostly hired Indians and relocated them to USA as the difference in labor rates made all the difference in profit making.

But, with reverse outsourcing came the dangers of reverse racism and reverse discrimination as well. Whoever is the majority in given circumstances can try to impose their rules on the minority, and the cycle repeats.

This time, an American who used to work at TCS in USA experienced discrimination and he has decided to sue TCS for that.

As per reports coming in, Steven Heldt, an ex-TCS employee in USA has sued them by filing a case at the US District Court in San Francisco citing discrimination and impartiality (pay walled link) dealt out to him as he is a Caucasian American.

Some of the pointers mentioned in the case:

  • TCS is favoring South Asians in hiring and promotions; hence discriminating against American employees
  • 95% of the 14,000+ workforce of TCS in USA comprises only of Indians, which has created a ‘grossly disproportionate workforce’. Between 2011 and 2013, TCS sponsored 21,000 H1B visas, mostly for Indians
  • TCS creates “discriminatory goals” and achieves them by hiring “disproportionately South Asian” workers
  • And those ‘few’ Americans who are left, face discrimination and partiality during appraisals, promotions and termination decisions
  • As per the law-suit, Steven was assigned tasks which “often involved only menial responsibilities” and as a result he experienced “substantial anti-American sentiment”
  • During his 20 month period in TCS, he came to know that his managers had “expressed his dislike for American workers”, and “believed Indians were smarter and better qualified than Americans”

TCS Responds

TCS spokesperson Benjamin Trounson has responded by terming these allegations baseless and have expressed their desire to fight this case in the court. He said, “TCS is an equal opportunity employer, and as such, bases its employment decisions — including recruiting, hiring, promotions, retention, and discipline — on legitimate non-discriminatory business reasons without regards to race, national origin”

As per Benjamin, TCS hired 2600 Americans in 2014, and they are working on some of the most advanced technologies, thereby driving the American’s innovation economy.

Infosys, another Indian IT biggie is fighting a similar case related with H1B visa which was filed in 2013 in Wisconsin, USA.

Repeat of Past?

In 2013, TCS had paid $30 million to settle a class action law suit filed by 2 ex-employees, who were Indians. It was originally filed in 2006 by Gopi Vedachalam and Kangana Beri in California because TCS asked all their employees to return the tax-refund cheques.

The case was dragged on for 7 years, and was hailed as the compensation amount of $30 million was hailed as the largest any Indian company has paid to settle matters out of court.

Recently, TCS was involved in a controversy in India, involving firing of employees’ en-masse which snowballed into an agitation and movement. Interestingly, during this case as well, TCS management was accused to being partial and discriminatory.

[Image Source: Shutterstock.com]

  1. Nutella says

    Nonsense. We all know Indians are the most racist people on planet earth. They are also the biggest thieves.

    http://timesofindia.indiatimes.com/business/india-business/TCS-fined-940m-in-US-for-stealing-healthcare-software/articleshow/51853815.cms

  2. Mr. Roy says

    American employees stand up for their rights more often, compared to the average Indian “butter-man” employee. It is a culture difference. TCS/ Infosys would not want to discriminate in true spirit of the organization. But people get dissatisfied when expectations are not met.

  3. Erik says

    How about indian folks suing these indian companies? recently there was a lawsuit filed against wipro in east los angeles court for not fully paying salary.

  4. rishu says

    now out sourcing companies also send trainee on B1/B2 to 14 to 28 days to “meet and discuss”.

  5. jake_leone says

    The reason why we run out of H-1b visas each year is because Offshore Outsourcing companies stuff in an excess number of requests.

    Think about it, companies whose sole purpose is to remove jobs from the United States, use the most H-1b visas. A distant second are companies that have huge Offshore contingents (doing practically the same thing). Because H-1b is mostly used to destroy jobs in the United States, by allowing companies to bring in liaison workers that are trained by locals, in order to ship the jobs overseas during overnight conference calls.

    Offshore Outsourcing companies will take a chance in the resulting H-1b visa lottery, because if H-1b candidate A or B doesn’t make it into the lottery, H-1b candidate C will do just fine. Because they are all trainees anyway.

    If Offshore Outsourcing companies were barred from the H-1b system, there would have been room for thousands of more H-1b requests. That means there would have a surplus of H-1b visas available for several months, maybe the entire year.

    And by causing a lottery, Offshore Outsourcing companies can deprive legitimate businesses of any reliable access to the H-1b system. Legitimate businesses will actually interview both Americans and if necessary foreign nationals for jobs on U.S. soil.

    But in U.S. public court documents, in the statements made by numerous Offshore Outsourcing top executives and Vice Presidents, and by the public LCA and PUC documentation, we know that the Offshore Outsourcing companies never, ever, look for Americans when hiring for STEM jobs in the United States, yet we still allow them access to the H-1b Federal Government program.

    And in a recent survey, by pro-immigration lawyers (of all the groups, mind you), 1 in 6 h-1b using employers admitted they would not hire an American and would only hire h-1b workers. And what’s more amazing the idiot immigration lawyers published that result, (for which I say, thanks for admitting the truth). That 6th H-1b employer could well be one of the top-20 Outsourcing companies that use over half the available h-1b visas.

    Discrimination against ONE, is the same as Discrimination against ALL. We as Americans have to stand together to protect the rights of all citizens. That’s how it has to work in America.

    What will happen when we increase the number of H-1b visas? Offshore Outsourcing companies will stuff in an excess number of requests. This forces a lottery that gives the Offshore Outsourcing companies a Government provided monopoly on cheap STEM labor in the United States.

    To do sensible immigration reform, first you have to actually look at the facts. The fact is the Senate held a hearing, hosted by esteemed Republican Senators, in which Southern California Edison, the Offshore Outsourcing companies were all invited to testify under oath. They all declined.

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