$1 Billion Fremont Company Involved in Outsourcing Controversy

Fremont-based iGate — a reported $1 billion IT service company — is making headlines after a Canadian bank hired the company to outsource workers from India to replace Canadian bank employees.

Though outsourcing isn’t a new concept, the Royal Bank of Canada has been grilled by foreign media for the practice.

According to the Toronto Star, the bank recently laid off 45 Canadian employees in their IT department and replaced them with workers from India contracted via iGate. The Canadian employees were allegedly asked to train the outsourced workers before they were let go.

The issue struck a nerve because the Royal Bank of Canada is reportedly one of the largest banks in the country.

Meanwhile, the Fremont company is unfazed.

iGate was featured last week on Forbes.com in a video and article under the headline “The Way of the Future.”

Headed by CEO Phaneesh Murthy, iGate has grown into a $1 billion company within the last decade by providing outsourced help.

According to Forbes, iGate has a workforce of 27,000 people and more than 300 large clients across the globe.

The company’s revenues last year was nearly $1.1 billion, a 47-percent increase over the previous year.

Read more about the outsourcing controversy on the Toronto Star.

See the Forbes.com interview here.