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 wasfiled 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.