Insiders reveal Cognizant’s preference for H-1B Workers

NEW YORK, UNITED STATES — Cognizant Technology Solutions Corp., a prominent IT outsourcing firm, is embroiled in allegations of discrimination against non-Indian employees.
A federal class-action lawsuit recently concluded that the company discriminated against over 2,000 non-Indian employees between 2013 and 2022.
This verdict supports findings from a 2020 US Equal Employment Opportunity Commission investigation, which identified similar biases based on race and national origin.
Impact on American employees
Latreecia Folkes, a former project manager at Cognizant, recounted her experience of being replaced by an Indian worker despite receiving commendations for her work.
In an interview with Bloomberg, Folkes expressed her belief that her American nationality and race contributed to her lack of career advancement opportunities.
“I definitely knew it was because of me being an American, not being Indian, and also because I was Black,” she stated. She filed an internal discrimination complaint in 2017, which was followed by her termination just three days later.
The lawsuit against Cognizant highlights a broader issue in the IT outsourcing industry: the alleged misuse of the H-1B visa system to hire cheaper labor from India, often disadvantaging American workers. Cognizant has been a significant user of these visas, securing more H-1Bs than any other employer over the past fifteen years.
Cognizant’s defense and industry practices
Jeff DeMarrais, a spokesperson for Cognizant, announced the company’s intention to appeal the verdict, emphasizing that Cognizant provides equal employment opportunities and does not tolerate discrimination. He attributed any hiring disparities to a shortage of tech workers in the United States and noted that the company has reduced its reliance on new H-1B visas in recent years.
However, internal documents and former employee testimonies suggest another narrative. A Bloomberg analysis revealed that American workers at Cognizant were twice as likely to have their employment terminated compared to their Indian counterparts on visas. The data also highlighted significant racial disparities in termination rates.
Broader implications for the IT industry
The case against Cognizant is part of a larger trend of discrimination claims within the IT outsourcing sector. These companies are accused of exploiting the H-1B visa system to maintain a more flexible and cost-effective workforce than hiring locally would allow.
Former Cognizant executive Jean-Claude Franchitti, who worked at the company from 2007 to 2016, testified that he was alarmed by the company’s practices regarding H-1B visas. As an assistant vice president in Cognizant’s Global Technology Office, Franchitti said he was asked to sign hundreds of letters certifying to federal officials that Indian employees required visas for assignments under his supervision.
However, he revealed during the September discrimination trial that most of those assignments did not exist. Franchitti stated that only three of the employees mentioned in the letters actually worked under him.
Critics also argued that this model disadvantages both American workers and immigrant workers who face significant challenges in the US job market.
Maria Ontiveros, professor emeritus at the University of San Francisco School of Law, commented: “It’s a business model that allows for exploitation. If you’re exploiting immigrants, it inevitably makes it harder for American workers.”
As Cognizant moves forward with its appeal, this case continues to highlight ongoing debates about the complexities and controversies surrounding the use of H-1B visas in the tech industry.