US IT workers sue former employer alleging that Indian workers push them out

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Interesting story yesterday about some of the industrial relations problems that can occur when businesses outsource work to an offshore supplier.

In California 18 IT workers are suing former employer Molina Healthcare Inc, its CIO and an IT supplier, alleging that the company broke state law when it replaced them with Indian workers from outsourced service provider Cognizant.

The US H1-B visa, which allows US employers to temporarily employ foreign workers in specialty occupations, was used in this case.

The workers that were eventually laid off say for several years the US workers were marginalised as the IT department became dominated by Indian nationals.

See the full story here.

US IT professionals are not alone in their suffering. UK IT professionals in their droves have lost their jobs as part of an IT contract that sees their roles sent overseas.

I am constantly writing about the problems IT professionals face as a result of businesses bringing offshore workers to the UK using the controversial Intra Company Transfer scheme to provide businesses with low cost IT staff.

Well the US equivalent, known as the H1-B visa, is equally problematic.

The New York Times has a story about it which has serious echoes of the UK. I post the article because it is very clear in describing the problem. The similarities to the UK are frightening.

Click here to read it.

See this video about the UK problem.

Also see this link for some of the articles about the issue in this blog. Scroll down there are lots.

4 Comments

What adds insult to injury is having to transfer knowledge off-shore before being shown the door in the UK!

I have read more detailed accounts of this story and what shocked me was the obvious racism of Indiian managers. There is even an HR manager claiming Indian managers from Molina and Cognizant prefered to use Indian staff. Their response seems to be that Indian workers are 'better'. This generalization is clearly racist. I am worried about this Indian supremacist view which reeks of all the worst racism of the US (and UK) 50 years ago.

I have read more detailed accounts of this story and what shocked me was the obvious racism of Indiian managers. There is even an HR manager claiming Indian managers from Molina and Cognizant prefered to use Indian staff. Their response seems to be that Indian workers are 'better'. This generalization is clearly racist. I am worried about this Indian supremacist view which reeks of all the worst racism of the US (and UK) 50 years ago.

The IT consultancy concerned in the US case is Cognizant i.e. the same company that is now poised to take over a lot of work for the FSA:

http://www.computerweekly.com/Articles/2011/08/24/247711/FSA-adds-Cognizant-to-supplier-roster-to-support-major-IT-work-during.htm

Still, if we keep handing jobs over to this lot, then we won't have enough money to need to worry about regulating financial services anyway.

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This page contains a single entry by Karl Flinders published on August 23, 2011 10:53 AM.

Why large IT projects are 20 times more likely to fail than other projects was the previous entry in this blog.

Local government is adopting shared services at lightening speed is the next entry in this blog.

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