University of California eliminated its 79 employees comprising most of its mid-level IT professionals only to save cost of $30Mn by outsourcing employees from India.

The university which unlike any other employers is a public institution and not driven by profit. “UC is training software engineers at the same time they’re outsourcing their own software engineers. What message are they sending their own students?” says Rep Zoe Lofgren, a congressmen representing California’s 19th district.

Administration of the University, upon termination of the competent employees gave 6 months time period prior to the notice with severance pay to vacate in another suitable workplace. Recommendation are also provided by the University where 32 employees are already placed in other companies.

H-1B visa holders from India of HCL are the switched employees to its counterparts in California. Low waged and efficient Indians are an imortant factor for saving costs of $30Mn, also the fringe benefits are voluntary to the Indian employees.

A fired employee said ” Usually, they outsourced the low-paying jobs. But now they use H-1B(visa) and use foreign workers to replace the high-paying jobs. This trend is dangerous.”

Sources said that the terminated employees are on the verge to sue the University. They had called their respective lawyers to file a case on them for killing “jobs” over discrimination charges. Their severance pay would be cut-off if they file a case recommended by the lawyers, but still the angry mob of employees are going to file the complaint in coming 1 to 2 months.

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