Verizon, Infosys Deal – Slave Trade or Employee Transition?

Transition of 1000 Verizon Employees to Infosys – New Trend for India or a new way to layoff employees?

Infosys is in news this week for winning $700 million deal with Verizon. It is termed as one of the largest IT outsourcing deals signed by the firm in the recent times. As per the company, this deals involves transition of application development & Management (ADM) services and business process management services. This is published in a few newspapers like any other large deal order wins in IT companies. (Read ToI coverage here )

Our NDLF IT Employees Wing is in touch with a few of the Verizon employees and gathered inside information from them.

This deal is actually a sale of part of Verizon business along with employees to Infosys. Some of the projects are taken over by Infosys after this deal.

We are publishing below the email communication of one of the affected employee who is forced to move to Verizon. As per this communication, Verizon is gushing that Infosys is the most fortunate option for Verizon employees and salary will be comparable with the base salary as a whole.

Based on ourconversation with Verizon employees, the following is what is planned as part of deal:

  1. Verizon employees will be moved to Infosys starting from Nov 2018. These employees currently working in Verizon have to submit resignation in Verizon. They will be provided with Infosys offer letter. Verizon employees will be officially relieved from Verizon and recruited in Infosys
  2. The employees are promised that the pay structure, role and all other benefits will be matched n new offer.
  3. This deal mostly involves movement of employees working in US and India. Here employees of Verizon are not given any choice to reject the offer and to continue with Verizon.
  4. If employee resists to resign, employee will be terminated from Verizon with 2 months notice period in India.
  5. If employee resists to resign in US, minimum compensation is planned as per land of law in US.
  6. Leave balance, gratuity, other specific benefits will be compensated by Verizon before they move. In other words, employee will not be able to transfer leave balance or any other prevailing benefits exist currently for them to Infosys.
  7. The employees moved to Infosys will be working in current Verizon projects for minimum 1 year and they will not be rotated to any other projects within Infosys for one year.
  8. Seniority of these employees will not be carried  forward to the new company. For example, if an employee worked in Verizon for 4 years, he/she is not eligible for gratuity as minimum term required for gratuity is 5 years employment. If that employee moved to Infosys and worked for 4 years in Infosys and resigned, she is not eligible for gratuity in Infosys also. In other words, senior Verizon employees are considered as any new joiner in Infosys.

The following are the queries as part of this deal from employee side and from union side:

  1. This is such a big news and more than 1000 of employees are moved from 1 company to other. Why this news is not published in employee point of view? Why media blackout this news?
  2. Why Infosys management not come out and clarify about the overall transition plan? The employees have various concerns on location, pay structure, roles and current benefits they have and how it is going to match in Infosys. Why Infosys is not giving any assurance which will help employees to understand what is their overall plan?
  3. Does Infosys guarantee the confirmation of these employees as usually employee will be confirmed 6-12 month after their movement?
  4. What is the role of government in this? Verizon during last year retrenched more than 1000 employees using bouncers. Who will validate and ensure transition is happening with the best interests of employees of Verizon?
  5. If employee resists to resign, how Verizon has the authority to retrench as feared by their employees?
  6. Verizion is a better pay master compared to Infosys and how Infosys will match Verizon employee salary. If these employees complain about the offer received, how Infosys will bridge the gap?
  7. The pay structure of this companies are different and Infosys has more variable pay compared to Verizon and also we are not sure how this will be matched properly.
  8. How seniority of Verizon employees will be translated to Infosys? How progression and other benefits in the future are going to be handled in Infosys?
  9. As per employees, if employee resists to resign in US, severance pay is paid as per land of Law. Why Indian law is not considered and same applicable for Indian employees of Verizon?

Read more employees concerns here

Some of the comments below:

“Does anyone know what the criteria they used to determine who was retained and who was moved to Infosys? Other than Directors kept the people that are top A$$ Kissers and most men were retained i can’t see any other criteria.”

“After Hans came to the leadership his first goal was to completely move the IT services to third party.. People are trying to cut costs and destroying lives 🙁 How many good people are there in VZ and they’ll be now moved to Infosys without proper benefits and we have not heard what Infy has got to say! As far as I heard they’ve started recruiting people already for this!”

“Does any one know the fate of people being retained in Verizon? I know folks moved to Infosys may stay there for 12 months and then may come out on to the road. don’t think the fate of retainers is good. Does retained people get package? Even though some good package is offered, are you sure they all get whoever wanted to get one?? There should be some uncertainty or magic behind the scene. Agree?”

“Yes, Verizon did outsource majority % of their IT work of certain Business units to Infosys. People have a problem with layoff. So they found another company to offload them -> Infosys. People have a problem with this too. What they are forgetting is that the folks who are retained, they have a uncertain future as well. You never know when they can be dumped too (irrespective of the fact that the rumour is 50% of CTC as bonus if they sign the 2 year bond).”

In ancient times, slaves were transferred from one master to the other. No information will be given to slaves during the entire deal. Here corporates are dealing IT employees as slaves from one company to another. But none of the media cover the news.

This is a big move in Indian IT industry and first of its kind with high number of people transitioning. Here we are transitioning people with flesh and brain and this should happen in a transparent manner with open public debate. Both the company should come forward to clarify all the basic queries of all employees. They should abide by the law of India while doing such transition and abide by policies/laws to be followed while doing this transition.

The employees of Verizon are afraid that it should not happen like last year with involvement of bouncers against the will of employees. Verizon also should not recruit more bouncers to initiate the transition and Infosys also should ensure/clarify to have smooth transition.

Verizon employees are confirmed employment in Infosys only for 1 year. They are afraid that they will come to road after 1 year. Employees who are not part of this deal are afraid what will happen to their jobs as Verizon lay off 1000+ employees last year.

The various concerns raised by employees related to job retention, salary match between the companies, and loss of gratuity and leave encashment, loss of seniority in new company, promotion and salary hike for newly joined employees in Infosys after 1 year, work location constraints should be validated and clarity should be obtained to all employees in this regard to ensure smooth transition

Our NDLF team is in regular touch with Verizon employees who are affected as part of this transition. We want affected employee to reach out for any help as part of this transition.

On behalf of the employees, we demand that Verizon and Infosys managements should hold joint meeting with employee representatives to discuss the transition plan. The plan should be modified to take into account the concerns of employees.

After all, employees make IT services company like Infosys and product companies like Verizon. Stop treating them like resources, and talk to them as professionals who bring in the revenues and earn profit for the company.

– Shyam Sundar, President,
NDLF IT Employees Wing

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    • Anonymous on September 29, 2018 at 3:15 am
    • Reply

    This is complete slave trade for the employees in USA. To avoid paying severance package, retirement medical benefits etc for the employees, Verizon decided cheap trade by threatening employees that your employment will be terminated if you don’t take Infosys offer and also you wont be qualified for severence/ benefits since we are providing you offer with Infosys. They just want to overload their packets by emptying employees pockets. More than anything, they have discrimination among employees by choosing some qualifying for severence and no offer to other employees. The employees here in USA dont believe in Infosys that the jobs are guaranteed or if their treatment will be fair enough after a year of job guarantee period. So, the better option would have been severence package/ benefits instead of going to Infosys. WE ARE AT A LOSS.

    • Suraj Thakare on September 29, 2018 at 3:24 pm
    • Reply

    Do you know about transition of emp from ttsl/tata docomo??

    • Shyam sundar on September 29, 2018 at 9:43 pm
    • Reply

    TTSL is shutting down on business. We dont know full details but junior employees are paid 4-6 month salary, elder employees opted for VRS and some percentage observed by other company. If employees are affected during that time and transition happen like verizon, as per our understanding that deal is also wrong. These question posted here are Verizon employees. If TTSL done wrong and nobody questioned, it does not mean Infosys also do the same way. It is the responsibility of both management to clear the fear of employees. Both should not convince employees in closed rooms but should give confidence in public. This give trust to employees. Why Infosys management come in public and convey the clarification required by employees

    • Swetha on September 30, 2018 at 8:36 am
    • Reply

    I am a ex-employee of VERIZON.. There are too many cheap politics with this company.

    Shankar so called CIO IT made a deal with google and forced gmail as a corporate email communicator. (May be a rumor)

    SVP’s , VP’s, Director’s saved there religion/ race/ region people. Some of the directors after knowing about the outsourcing .. they made sure they had sent his people to other teams where there won’t be any impact. The entire company is in that state.Don’t expect anything from VERIZON unless they outsource all the higher management and bring some fresh leadership starting from Shankar(CIO -IT).

    Just an FYI- I was not impacted with this New Slave Trade.

    • Siddarth on September 30, 2018 at 6:46 pm
    • Reply

    interestingly vz directors knew this was coming back in May already. They were busy moving their best friends whom they wanted to stay back to different teams from May itself. If you went to the same Mosque as the director, most likely he moved you to the safer team or he saved you from Infosys.

    The children of Shaygan are still prevalent at vz. Shaygan’s hoodlums were dismantled from CIO levels but there are still some directors left who are well coached by Shaygan. The same problem might exist with the Church or Temple going director too. All directors busy with saving their brother in law and their fellow “God’s Beings”

    • Bob Cratchit on September 30, 2018 at 11:25 pm
    • Reply

    VZ is actually stealing the severance pay of 4800 IT workers being involuntarily terminated, and using it to fund the $700 million outsourcing of their jobs to India-based IS, plus forcing them to train their replacements.

    These 4800 do not get their earned severance for this termination up front with freedom to work anywhere (as per normal), cannot post for another VZ job (as per normal), have to accept the IS job offer with a week to decide or else forfeit both a normal severance and the IS job, work there at least a year (normally-lower IS pay supplemented by the stolen severance will be raised up to their previous VZ levels for that year only, as if stringing out their severance and bundling it with IS pay, to coerce their staying the full year and not leave money on the table that was rightly owed to them up front), after which they are likely to be fired with no severance, now being 1-yr IS employees.

    It’s a backdoor outsourcing to an offshore company, funded off the backs of the workers’ own stolen severance pay!

    • kasirajana on October 2, 2018 at 10:12 am
    • Reply

    வெரிசான் நிறுவனம் இன்போசிஸ்க்கு ஊழியர்களை மாற்றம் செய்வதற்கு முன்பு ஊதிய உயர்வினை அளிக்க வேண்டும் என்றும் கோரிக்கை வைத்துள்ளது.

    ஐடி ஊழியர்கள் சங்கமான அனுப்பிய மின்னஞ்சலுக்குப் பதில் அளித்த வெரிசான் “எங்களது வணிகம் மற்றும் துறை மிகப் பெரிய மாற்றத்தினை எதிர்பார்க்கிறது. அதில் உள்ள சவால்களினை சரி செய்ய இது போன்ற நாடவடிக்கைகள் சாதாரணம் என்று தெரிவித்துள்ளது. வெரிசானில் இருந்து இன்போசிஸ் செல்ல இருக்கும் ஊழியர்கள் அங்கேயே தொடர்ந்து பணிபுரிவார்கள் என்றும் தெரிவித்துள்ளது.

    Read more at:

    • Natasha K on October 2, 2018 at 11:10 pm
    • Reply

    This story is true and not a rumor so, my question is: Why have none of the major U.S. news media (Fox, CBS, CNN, ABC, etc.) reported on this? If you google, “Fox news Verizon Infosys” or “abc news Verizon Infosys” (or any of the others listed above) you will not see a single article on this topic, from those news agencies.

    Other than the WSJ, this site, India news agencies, and a few lesser renowned media sites, there is no mention of this. What gives?

      • AmyInNH on December 1, 2018 at 2:25 am
      • Reply

      Because it clashes with the political narrative, “We’re in a ‘good’ economy!”.
      Verizon and many other companies have been doing this for decades. Main source of “GDP is up! Stock market is up!”
      Typically buried within newspapers, mentions of local layoff, name of the company, no numbers, no mention of offshoring.

    • Vince on October 5, 2018 at 10:12 am
    • Reply

    @Natasha K: Forbes just published a story about it
    Verizon Lays Off 44,000, Transfers 2,500 More IT Jobs To Indian Outsourcer Infosys

    • Ramesh Nair on January 10, 2019 at 6:23 am
    • Reply

    Telecom company running their operation on high school projects, a CIO whose software knowledge can be matched to that of a mentally challenged teenager, what more do you expect ?

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