Dozens accuse TCS of favoring Indian workers over older US employees; company says allegations ‘misleading’
The US Equal Employment Opportunity Commission (EEOC) is investigating dozens of allegations that Tata Consultancy Services (TCS), India’s largest IT outsourcer, discriminated against its American workers based on age, race, and national origin. The claims primarily come from professionals over the age of 40, many of whom say they were targeted in layoffs while Indian colleagues, including those working on H-1B visas, were spared, reported Bloomberg.
TCS, which has more than 6,00,000 employees globally, responded to the allegations by labeling them as “meritless and misleading.” A company spokesperson said, “TCS has a strong track record of being an equal opportunity employer in the US, embracing the highest levels of integrity and values in our operations.”
The complaints, which started surfacing in late 2023, have raised concerns about the company’s treatment of non-South Asian employees. As the EEOC investigation continues, the agency has not released any public details, as federal law protects the confidentiality of complaints.
A Bloomberg News review of the complaints, which have not been publicly disclosed, reveals that the EEOC’s probe began during President Biden’s administration and has continued under President Trump’s.
In an April 2024 letter, US Representative Seth Moulton (D-Mass.) urged the EEOC to consider opening an investigation into TCS, citing a potential pattern of discrimination against American workers.
Moulton emphasized that TCS’s practices may also involve the misuse of US work visa programs meant to address labor shortages. “TCS’s actions may have constituted a pattern-or-practice of discrimination impacting Americans that falls within the EEOC’s jurisdiction,” Moulton wrote.
This is not the first time TCS has faced such scrutiny. In the UK, three former workers filed similar claims of discrimination against the company, alleging bias based on age and nationality as part of a redundancy program. TCS has also denied these allegations.
The EEOC’s investigation follows a 2020 probe into Cognizant Technology Solutions, another major outsourcing firm, which found that the company had discriminated against over 2,000 non-Indian employees between 2013 and 2022. A jury agreed with the EEOC’s findings, and Cognizant now plans to appeal the verdict.
TCS, which counts major US clients such as airlines, automakers, and financial institutions, has also faced criticism over its use of visa programs, particularly the L-1A visa. Bloomberg reported in February 2024 that the company has heavily relied on the L-1A visa program, which is designed for internal company transfers. Some former employees allege that TCS used the L-1A program to circumvent H-1B visa rules, allegations the company denies.
TCS has come under further scrutiny due to comments from its head of global HR, Milind Lakkad, who reportedly told an news agency that the company planned to reduce the share of American workers in its US workforce from 70% to 50%. Lakkad said this move would open up opportunities for employees in India. This remark has been cited in workers’ complaints to the EEOC as evidence of discriminatory practices.
Under the leadership of Andrea R Lucas, appointed by President Trump in January as acting EEOC chair, the agency has pledged to intensify its efforts to address discrimination against American workers. Lucas has emphasized that “unlawful bias against American workers” is a growing issue across the country and that tackling illegal discrimination will help reduce the demand for foreign workers.
TCS, however, has declined to comment on specific details from the workers’ complaints, and the investigation continues.
