06
March
2017

California University Replaces All IT Employees with Cheap Indian Labor to Save $30 Million

By: Sourav

While the ripple effects of US President Donald Trump’s immigration reforms and restrictions on work related immigration visas are still distinctly felt in the current socio-political climate of America, another furor is agitating it further. Adding to the prevailing chaos and commotion is the University of California’s outsourcing of IT jobs to India.

The University of California in San Francisco fired its entire IT department and issued pink slips to the 79 IT employees including 49 permanent employees to save $30 million. The university decided to outsource its IT requirements to HCL, an Indian IT company, because of cheap labor available in India. It has already raised a hue and cry among Americans across California.

Although the outsourcing of IT jobs from California University to India is a small case, it has fuelled the fire. Being a public institution, the University of California runs on taxpayers’ money. It is the United States’ first public university to have fired its employees and outsourced their jobs to India. According to some reports, the university has hired some IT professionals on H1B visa from India.

The wound that the recent Kansas shooting, an incident of hate crime, has incurred to the Indian community worldwide is still fresh. The replacement of American employees with cheap Indian labor by the University of California may turn the heat of agitation to the Indians in USA.

Though the university defended itself by justifying the decision on grounds of the increasing IT costs, the terminated employees are not willing to accept any justification. Reportedly, 13 out of the terminated employees have contacted a lawyer to sue the University of California on grounds of discrimination against them and for depriving them of their right to American jobs.

A report from the administration of California University claims that the terminated employees were given a 6-month notice period and severance pay. According to it, 32 employees out of the 49 permanent employees have already got job offers in other institutions.

Will the outsourcing of American jobs to India and other Asian countries be limited or prevented with a heavy hand, once it comes to the notice of the Trump administration?

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