Big win for TCS, as US court unanimously rules in its favour; TCS says it is a Global company

Last Updated: Thu, Nov 29, 2018 19:17 hrs
Tata Consultancy Services CEO Chandrasekaran listens to a question during a news conference in Mumbai

Tata Consultancy Services, India's largest technology and consulting services firm said that it's hiring and retention policies were based on capabilities.

In a statement, the company said that it's policies were "irrespective" of the background or national origin. On Thursday, a nine-member jury unanimously ruled in favour of the company in a case involving charges of discrimination. The Californian court sided with TCS, saying the company did not discriminate against non-south Asian workers in the US as alleged in a lawsuit.

This has been reported as a significant win for the Indian IT outsourcing industry.

"We have always maintained, the claims made in this case were baseless and we are gratified that the jury agreed...So the decisions we make about the hiring and retention of employees are based purely on their capabilities and fit in serving our customers' business needs," a TCS spokesperson has been cited in media reports.

The company asserted it will continue to invest in its people, impart digital training and empower them to succeed at TCS and enable customers' success, "irrespective of their background or national origin".

TCS also chose to describe itself as a "global company", and said that it operated in the United States for over 40 years.

"Skilled American workers are critical to the success of the US business and to the nation's economic success, and we will continue to invest heavily in the country's workforce, academic alliances and our extensive youth STEM education initiatives," the spokesperson said.

The case pertains to former TCS employees who had claimed in a lawsuit that they received fewer work opportunities and were eventually fire owing to their race and national origin. The attorney for the ex-TCS employees has been reported as saying that the tech leader fired less than one percent of South Asian employees compared to 10.6% of non-South Asian employees.

The suit also alleged that TCS let go 78% of non-south Asian workers who were taken off job assignments, or "benched" from work, between 2011 and 2014, while only 22 per cent of benched south Asians were fired, even though they made up half of the company's US workforce.

With Agency Inputs