Indian IT firms are Heading for a Fall

Computerworld:  Three of the largest Indian IT outsourcing firms–Infosys Technologies, Larsen & Toubro InfoTech and Tata Consultancy Services–are currently defending themselves in U.S. lawsuits related to visas and working conditions. Former Infosys employee Jay Palmer has sued the company because he says they fired him when he refused to participate in an H1-B visa fraud scheme. Larsen & Toubro is facing a class action lawsuit which alleges discrimination and harassment of pregnant workers, as well as visa fraud. And workers have filed a class action lawsuit against Tata, claiming the company made illegal deductions from their paychecks while they worked in the U.S.

Taken together, the cases seem to demonstrate that the Indian outsourcing firms may not understand the ramifications of doing business in the U.S. As Computerworld’s Patrick Thibodeau writes, “India’s IT firms understand software, but not America.”