A recent report from Bloomberg News has unveiled serious allegations of discrimination at Cognizant Technology Solutions Corporation, a major U.S.-based IT company. The report, titled “Insiders Tell How IT Giant Favored Indian H-1B Workers Over US Employees,” claims that the company has systematically marginalized American graduates while favoring low-salary Indian workers, particularly those on H-1B visas. Cognizant, which employs around 32,000 people from various backgrounds, is accused of creating a business model that prioritizes hiring cheaper Indian labor, despite promises to increase employment opportunities for American graduates. Employee Sonya McLaughlin described these assurances as mere rhetoric lacking substance, asserting that the company’s focus remains squarely on utilizing foreign visa workers.
This systemic bias towards Indian workers is compounded by a recent federal jury verdict, which concluded that Cognizant intentionally discriminated against over 2,000 non-Indian employees between 2013 and 2022. The jury’s decision echoed findings from a prior investigation by the U.S. Equal Employment Opportunity Commission and identified discrimination based on race and national origin. Cognizant has announced its intent to appeal the jury’s decision, maintaining that it upholds equal employment opportunities and complies with relevant laws regarding visa workers. The implications of this case resonate within broader discussions on employment practices in the U.S., requiring scrutiny of how swiftly companies adapt their workforce to favor foreign graduates at the expense of local talent.
The shift towards offshoring positions and favoritism for foreign workers can be attributed in part to U.S. government policies that lack adequate labor market tests. John Miano, a lawyer with the Center for Immigration Studies, emphasized that numerous jobs are being outsourced without verifying the availability of American graduates. The Biden administration has accelerated the trend of white-collar outsourcing, while business groups advocate for an increased influx of migrant workers. In a contrasting argument, Kevin Lynn, founder of U.S. Tech Workers, has criticized these employment visa programs for not attracting the best talent and for contributing to the displacement of American graduates. He testified that this situation has bred stagnation and a decline in professionalism and meritocracy within the workforce, as management becomes increasingly dominated by individuals from particular ethnic backgrounds.
The decline in salaries for American graduates since 2000 further underscores the detrimental effects of this hiring practice. Data reveals that compensation rates for technology graduates have nearly stagnated, achieving only a 0.15 percent growth per year since 2008. This lack of progress has disproportionately impacted American graduates, many of whom find it difficult to recover their career trajectories after being sidelined by visa workers. Lynn highlights a fundamental issue rooted in the priorities of corporate executives, who favor short-term profits derived from cost-effective, low-wage labor, contributing to a broader decline in innovation and productivity across various sectors.
Testimonies from U.S. graduates working at Cognizant reveal the intense challenges they face in an environment swarming with compliant visa workers. Employees like Abby Israel, who oversaw the enforcement of anti-discrimination laws, reported alarming racial disparities in termination rates, showing that Black and Latino employees faced significantly higher rates of involuntary job loss compared to their Asian counterparts on visas. This evidence, dismissed by management despite its gravity, unveils an alarming lack of accountability and transparency within the company. Employers seem undeterred by the experiences of U.S. professionals, as evidenced by the hostile treatment described by Christy Palmer, who grappled with intimidation and discouragement when attempting to contribute her insights during meetings.
Adding to the overarching narrative is the growing influx of foreign mid-skilled workers, primarily Indians, seeking entry into U.S. jobs using various visa categories. With at least 250,000 visa workers entering the U.S. annually, many American graduates are systematically displaced by these employees who gain a foothold in the workforce through ethnic hiring networks controlled by staffing agencies. While companies like Facebook and Apple have faced penalties for discriminatory practices, the indisputable fact remains that foreign visa workers currently occupy over 2 million positions that would otherwise be held by American graduates. This trend enables tech investors to reap substantial financial rewards while deepening the struggles faced by young American professionals in securing stable, competitive employment.
The structure of Cognizant itself serves as a case study in the complexities of U.S.-India labor dynamics. Founded in India in 1994 by Indian-origin immigrants linked to Wall Street firm Dun & Bradstreet, Cognizant has established operations in Teaneck, New Jersey, but the company’s leadership is largely responsive to significant investors, such as Vanguard and BlackRock, who own a substantial portion of the stock. The push for American residency and citizenship among lower-cost Indian workers in exchange for their labor further complicates U.S. job markets, feeding into a broader geopolitical framework where India’s government actively collaborates in the export of its talent to the United States. The ongoing Palmer v. Cognizant Tech Solutions Corp. case embodies these systemic challenges and highlights the urgent need for reform in labor practices as they pertain to both U.S. graduates and the increasing influence of foreign workers.