TCS Wins US Lawsuit Over Alleged Staff Discrimination

In a verdict that will have major ramifications for the Indian IT services industry, Tata Consultancy Services (TCS) received a big win in a US lawsuit on Wednesday. A California jury unanimously rejected claims that TCS had discriminated against non-South Asian workers in the US. The verdict will set a key precedence for the $120-billion IT outsourcing industry in the US, which has been time and again accused of body shopping and replacing American workers with cheaper Indian talent.

“This is a very important verdict for not just TCS but the entire IT services sector,” said Sanchit Vir Gogia, Chief Analyst & CEO at Greyhound Research. “There have been a series of investments made by Indian IT services companies in the US in the past couple of years. The question now that the industry needs to tackle is whether these investments are aligned to solve core issue of treating people equally or just to avoid bad press.”

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Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, an award-winning global research & advisory firm. To read more about him, click here.

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