Former employees say TCS abused Australia visa

Former employees say TCS abused Australia visa

Summary: India's biggest outsourcing vendor has been accused of exploiting a visa scheme to import IT workers into Australia, where it services some of the country's biggest companies.


Former employees have accused Tata Consultancy Services (TCS) of abusing Australia's migrant worker visa designed to import talent to fill skills shortages. 

According to a report Friday by the Australian Broadcast Corporation (ABC), TCS, which is India's biggest outsourcer by revenues, flouted rules outlined under the 457 visa scheme and imported cheap, foreign workers without first attempting to recruit local talent.

An anonymous former TCS employee told the ABC that if the Indian company needed a new developer, they would not perform the required step to advertise for an Australian worker. "We just contacted the local area manager and he would send a developer on the next plane from Mumbai," the employee said.

TCS, which holds multi-million dollar contracts with Australia's biggest companies, refused to comment on the allegations.

Another former employee of TCS, Hasan Mahboob, said the 457 visa scheme was overused.

"I'd certainly seen heavy use of 457 visa, starting from the very top management-level people, ro relationship managers, account managers, service delivery managers, project managers, program managers, and business analysts--all of which I question should be done by 457 visa," Mahboob said.

Topics: Outsourcing, India, Australia

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.


Log in or register to join the discussion
  • just like in US

    I see no difference here for abuses with H1-Bs!
    LlNUX Geek
  • Migrant workers

    I can see both sides of the argument here because businesses are looking to save money and so are resorting to all possible routes. The problem is that this visa abuse is now harming the local economy and the reality is that this is not sustainable because:
    a. Local people need jobs so that they can spend money in their economy
    b. India's population is growing exponentially and so needs more and more of everything, whilst wages are actually rising fast and the potential cost savings are fast disappearing.
    As new economies such as Burma come on stream India is actually going to be the biggest loser because unemployment is going to go through the roof and they will also found themselves not quite so welcome in other countries.
    • Skilled Workers

      This former TCS employee was local or as the article puts it imported from abroad ?

      What was the contract condition with there Client ? Whatever TCS does would depend on those contract terms, TCS's client is cutting cost, TCS is cutting cost, so what's the issue, This is how outsourcing works, TCS's client instead of outsourcing could very well do it in-house. Why not name the client/clients, they are the ones responsible.
      If not TCS then someone else would fill-in doing exactly what TCS does. The posters here are clearly ethnically biased and ignore the core issue, which is the skillsets required are not locally available, If there was an abundance in skillsets (local) then in all probability there would have been no outsourcing in the first place.
      • It is not about race

        I am afraid you are missing the point. You are correct that outsourcing is about cost, but the problem is that once the jobs are taken out of a local economy, and this will soon happen to India, you can almost never get them back, and the rest of the economy suffers because that money is not being spent locally.
        India has some of the worst protectionism in the world and it can be difficult to do business or to invest there. Other countries are simply exercising the same restrictions in order to protect their own economies.
  • Abuse?

    So should TCS go to visa abusers anonymous club or should they pay compensation to visas and ask for forgiveness?
  • Another failure of our current incompetent government.

    Yet another in the long list of incompetently executed policies of the current Australian government. If it can be screwed up then it surely will - the incompetence of the current government is astounding. Their only well executed policies are those which strive to cement addtiional power with their union support base before their hold on power is obliterated at the next election in September.
    It will be a long time in the wilderness at this rate so every rat is grabbing as much silverware as they can find.