iGate caught in Canadian visa controversy

BANGALORE: Technology services company iGate on Monday said that it has abided by all applicable laws and regulations, amid reports that Canada will investigate whether the country's largest bank Royal Bank of Canada violated immigration laws by replacing local workers with contract staff from iGate.

The Fremont, California-based iGate, which has most of its 30,000 employees based in Bangalore, said in a statement that it provides appropriate information to the relevant immigration authorities while deploying its employees in other countries. "We do not comment on specific client engagements but can outline our stringent compliance norms - not specific to any one engagement. For any engagement requiring foreign workers, in any country, iGate provides appropriate information to relevant immigration authorities as may be required for the issuance of temporary work authorisations, and hiring is only done after all work authorisations are properly issued under existing law and policy," iGate said in an emailed statement.

After breaking into the billion dollar club — helped by the 2011 Patni acquisition — iGate led by former Infosys executive Phaneesh Murthy has been pursuing an aggressive strategy to change outsourcing industry's traditional model of charging for time and effort. Instead, Murthy wants to charge for outcomes delivered, thus sharing greater risk with clients.

Last week, the Canadian Broadcasting Corporation reported that RBC — iGate's second-largest client contributing a little over 10% of its $1.1 billion sales — was planning to fire close to 50 employees in its investor services department and replace them with Indian employees on contract with iGate. It is typical for Indian IT services companies to send their staff to client locations on contract, while it puts in place processes to transition work to be done from India or other lower cost locations.

Bloomberg reported Canada's human resources minister Diane Finley as saying that the situation was unacceptable and that government will investigate the matter. Canadian authorities will also look into the country's temporary foreign worker programme that allows companies to hire foreign workers when qualified citizens or permanent residents of the country are not available.

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