The US Equal Employment Opportunity Commission (EEOC) is investigating dozens of allegations that India’s largest IT services provider, Tata Consultancy Services Ltd. (TCS), discriminated against American workers based on their race, age, and national origin, Bloomberg News reported.
The complaints, which began surfacing in late 2023, have been filed primarily by former TCS employees in the United States who are over 40 and not of South Asian descent. The workers allege that they were disproportionately targeted during layoffs, while Indian colleagues—many on H-1B visas—were retained. Bloomberg reviewed more than two dozen of these complaints, which remain confidential under federal law.
TCS major calls claims ‘meritless’
“These allegations that TCS engages in unlawful discrimination are meritless and misleading,” a TCS spokesperson told Bloomberg. “TCS has a strong track record of being an equal opportunity employer in the U.S., embracing the highest levels of integrity and values in our operations.”
The EEOC, citing federal confidentiality rules, declined to comment on ongoing investigations. However, interviews and internal communications viewed by Bloomberg confirm that the probe began during the Biden administration and has continued under the current administration led by President Trump.
In a previously unreported April 2024 letter, US Representative Seth Moulton (D-MA) urged the EEOC to examine whether TCS’s layoff practices represented a broader discriminatory pattern. “TCS’s actions may have constituted a pattern-or-practice of discrimination impacting Americans that falls within the EEOC’s jurisdiction,” Moulton wrote. He also flagged concerns over a “potential misuse of US work visa programs designed to fill US labor shortfalls.”
The case draws parallels to a 2020 EEOC investigation into Cognizant Technology Solutions Corp., another major IT outsourcing firm, which the agency found had discriminated against non-Indian workers in the US. A federal jury later ruled in a class-action lawsuit that Cognizant had intentionally discriminated against more than 2,000 non-Indian employees between 2013 and 2022—an outcome that echoed the EEOC’s findings. Cognizant has denied the allegations and stated it plans to appeal.
The current complaints against TCS have reignited debate over the H-1B visa program, which allows US employers to bring in skilled foreign workers when there is a shortage of domestic talent. Critics argue that large outsourcing firms have used the system to replace local workers with lower-paid employees from overseas. A Bloomberg investigation in July revealed that some outsourcing companies have flooded the annual H-1B visa lottery with applications through their vast offshore networks.
In addition to its heavy use of H-1B visas, TCS has also been accused of relying on the L-1A visa—reserved for managers. In February, Bloomberg reported on former employees’ claims that TCS exploited the L-1A visa to sidestep H-1B limitations. TCS denied any wrongdoing in response.
The company, part of the Tata Group and India’s largest IT firm by revenue, employs over 600,000 people globally. Its US clients span industries such as finance, aviation, and manufacturing. TCS has long positioned itself as a key player in the American tech services market.
Further fueling concerns was a comment made by Milind Lakkad, TCS’s head of global human resources, in an interview with an Indian news agency. He said that the company was open to hiring Indian visa workers in the US who had been laid off by other tech firms. Lakkad added that while 70% of TCS’s US workforce were Americans, the company aimed to reduce that number to 50% to create more opportunities for Indian staff.
In the UK, TCS is also facing scrutiny. Three former employees have filed complaints with an employment tribunal, alleging that they were discriminated against based on age and nationality during a 2023 redundancy round, The Guardian reported. TCS denied the allegations in its tribunal response.
Andrea R. Lucas, appointed by Trump in January 2024 as acting EEOC chair, has vowed to crack down on what she calls “unlawful bias against American workers.” In a February press release, she emphasized that discrimination in favor of foreign visa holders undermines both American jobseekers and the integrity of the US immigration system.
As investigations continue, TCS declined to comment on the specific details of the complaints, while maintaining its commitment to fair employment practices.