Lawsuit Filed against Oracle, Indian Companies like TCS, Infosys Face Possibilities of Legal Woes
With Donald Trump sworn in as the President of the United States of America, it is expected that tech giants of India like TCS and Infosys have to brace themselves up for tougher times ahead.
Earlier this week, Oracle was sued by the United States Labor Department. Oracle has been accused of using discriminatory hiring practices against Hispanic, White and African-Americans favouring Asians especially “Asian Indians”.
Peter Bendor Samuel, CEO of IT consultancy firm, Everest Group, stated that he is expecting a rise in the number of lawsuits from different companies in the near future. Also, he expects that US regulators will impose increased scrutiny which will further add to the friction.
Indian firms are preparing themselves for the changing circumstances. Pravin Rao, Infosys COO, stated that the firm is continuing to invest and hire locally. But, the shortage of skill in the US and the easy availability skilled workforce throughout different markets makes them rely on different visa programs to appendage these skills. Also, he expects that Trump being a seasoned entrepreneur will introduce an administration that is innovation friendly and business friendly.
Time and over, the outsourcing industry of India has turned out to be punching bag for American politicians for more than a decade. Though it is not uncommon to see politicians taking their shots at the $150 billion Indian outsourcing industry but Trump has been the first to campaign virulently against it and to be sworn in as the president.
Indian companies like Infosys and TCS have got involved in legal troubles in the past as well. In 2011, Jack Palmer sued Infosys after he alleged that there are visa violations in the company. Although, he lost the court battle in August 2012, he again filed a lawsuit in 2014 for alleged wrongful termination. In a similar instance, $34 million was paid by Infosys to end an investigation into hiring record errors and visa fraud. TCS was sued by a former American employee in 2015 alleging the company of favouring South-Asian descent workers.
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