The US Equal Employment Opportunity Commission (EEOC) is investigating allegations that Tata Consultancy Services Ltd (TCS), India’s largest IT services firm, engaged in discriminatory layoffs targeting American employees based on their race, age, and national origin.
The ongoing probe follows more than two dozen complaints filed with the agency starting in late 2023, reports Bloomberg. Many of the complainants are over the age of 40 and from non-South Asian backgrounds, the report adds.
The complainants claim they were disproportionately selected for layoffs, while Indian employees, particularly those on H-1B skilled worker visas, were retained.
TCS has firmly denied any wrongdoing. “Allegations that TCS engages in unlawful discrimination are meritless and misleading,” a spokesperson for the company 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 EEOC, citing confidentiality laws, declined to comment on the investigation. However, materials and interviews reviewed by Bloomberg confirm that the probe began under Joe Biden’s administration and has continued into President Donald Trump’s current term.
Concerns about discriminatory practices by Indian outsourcing firms are not new.
In a 2020 case, the EEOC found that another outsourcing giant, Cognizant Technology Solutions Corp, systematically discriminated against non-Indian workers. That conclusion was upheld in a 2023 jury verdict, which found that more than 2,000 American employees were intentionally discriminated against over nearly a decade. Cognizant has denied wrongdoing and said it plans to appeal.
The TCS investigation appears to follow a similar pattern, with complainants alleging that their dismissals aligned with internal comments from TCS leadership. Specifically, they point to remarks by Milind Lakkad, the company’s global head of human resources, who told an Indian news agency that TCS hoped to reduce its American workforce share from 70% to 50% to create more opportunities for Indian staff.
In an April 2024 letter that has not been previously reported, US Representative Seth Moulton (D-MA) urged the EEOC to open a formal investigation into TCS. He cited complaints from his constituents and raised concerns about potential misuse of U.S. visa programs. “TCS’s actions may have constituted a pattern-or-practice of discrimination impacting Americans that falls within the EEOC’s jurisdiction,” Moulton wrote.
The use of work visa programs such as the H-1B and L-1A by firms like TCS has drawn increasing scrutiny. A Bloomberg News investigation last year found that some outsourcing companies have used their large overseas workforces to flood the annual H-1B visa lottery, effectively squeezing out smaller competitors and US job seekers.
TCS has also come under fire for its use of the L-1A visa, which is meant for transferring managerial staff between offices. Some former employees have accused the firm of using the L-1A program to sidestep H-1B restrictions – allegations TCS denies.
The EEOC’s acting chair, Andrea R Lucas, appointed by President Trump in January, has signalled a tougher stance on what she calls “unlawful bias against American workers.” In a February statement, she vowed to increase enforcement efforts and said such discrimination undermines both American labour and the integrity of US immigration policy.
The controversy has also crossed the Atlantic. In the UK, three former TCS employees filed claims with an employment tribunal alleging age and nationality-based discrimination during a 2023 redundancy process. TCS has denied those allegations as well.
TCS is India’s biggest IT services firm by revenue, with more than 600,000 employees globally. It is one of India’s best-known companies, part of the sprawling Tata Group, and like other outsourcers, it serves US clients such as airlines, automakers, financial institutions and more.
