Tata Consultancy Services (TCS) is under investigation by the US Equal Employment Opportunity Commission (EEOC) following allegations of workplace discrimination.
Former employees have accused the company of targeting non-South Asian workers, particularly those over the age of 40, for layoffs while favoring Indian colleagues, many of whom were employed on H-1B skilled worker visas.
These claims have sparked widespread debate about corporate practices, visa programs, and workplace equity.
Allegations on TCS and Investigation
The complaints against TCS began surfacing in late 2023, primarily from former employees in the United States.
These individuals allege that TCS disproportionately targeted them during layoffs, sparing Indian colleagues.
The accusations include claims of bias based on race, age, and national origin.
The EEOC, tasked with enforcing anti-discrimination laws in the workplace, is now investigating these allegations.
However, due to federal confidentiality rules, the agency has not publicly commented on the ongoing probe.
TCS has strongly denied the allegations, describing them as “meritless and misleading.”
A company spokesperson emphasized TCS’s commitment to being an equal opportunity employer and maintaining the highest levels of integrity in its operations.
Allegations on TCS: Political and Legal Dimensions
The case has drawn attention from political figures, including US Representative Seth Moulton, a Massachusetts Democrat.
In April 2024, Seth wrote to the EEOC, urging the agency to investigate whether TCS’s practices constituted a “pattern-or-practice of discrimination” and potentially misused US work visa programs.
His letter highlighted concerns about the impact of such practices on American workers and the integrity of visa programs designed to address labor shortages.
Similar allegations have emerged in the UK, where three former TCS employees filed complaints with an employment tribunal in 2023.
They claimed discrimination based on age and nationality as part of a redundancy program. TCS has denied these allegations as well.
Broader Implications
The allegations against TCS underscore longstanding criticisms of outsourcing companies’ use of the H-1B visa program.
Critics argue that these firms exploit the system to replace local workers with lower-paid employees from overseas.
A Bloomberg investigation revealed that some outsourcing companies have flooded the annual H-1B visa lottery with applications through their offshore networks, raising concerns about fairness and transparency.
The case also draws parallels to a 2020 EEOC investigation into Cognizant Technology Solutions Corp., another major IT outsourcing firm.
The agency found that Cognizant had discriminated against non-Indian workers in its US operations.
A federal jury later ruled that Cognizant intentionally discriminated against over 2,000 employees between 2013 and 2022.
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