India has emerged as a country where employee poaching is rampant. This situation has come to light with a lawsuit filed by HOV Services against Cognizant Technology Solutions. Teaneck, N.J based Cognizant has been accused by HOV services, a business process outsourcing firm in Chennai of luring away HOV employees in India and impacting HOV’s business on a global scale by affecting its competitive advantage. Over the past few years, more than 50 employees in India have been lured away by Cognizant. A list of 450 HOV employees was obtained by Cognizant that had details of their production efficiencies, salary, bonuses and customer project names, according to the lawsuit.
Due to the rapid growth of the IT industry, employee poaching is endemic in India. To indicate labor pool stability to their investors, many Indian companies include attrition figures in earnings releases. Companies like Infosys in India have cited heavy poaching to explain high attrition rates in the past year. In the U.S too, poaching has been a problem as displayed by the lawsuits between Google and Apple, Adobe and Apple, among others. The government sees settlements that prohibit employee poaching as an anti-competitive step.
Both, poaching or raiding are not nonlegal, according to Alan Marcuis, professional at Hunton & Colonist LLP in Metropolis. Marcuis adds that juristic production would be triggered exclusive if poaching led to different issues like the failure of good dimension, revealing of swop secrets or a fall separation with employees. Meanwhile, to protect employees from propulsion ship to challenger companies, several employers also use non-compete agreements. Along with poaching, different potentially illegal steps get also been victimized by Cognizant to attraction away HOV employees. Then stream HOV employees were persuaded by Cognizant to netmail accumulation on the 450 employees, according to the case.
The claims prefab by this suit hold been said to be without merit, according to Cognizant's spokeswoman. Around 14,200 employees faculty be gained after a unification with another commercialism noesis outsourcing unfaltering, Metropolis based SourceCorp takes send, according to HOV. The Asiatic IT manufacture aggroup Nasscom has issued an 'ethics framework' for the IT business with guidelines for hiring, in inflict to tactfulness the wider opening at assistance. A persuasion has been included that suggests companies to request new hires to get ultimate clearance from their rife employers before taking up a new job, as mentioned in the guidelines. Referral payments to employees who content leads on future recruits from their early employers should also be discouraged, according to Nasscom.
In Bharat, the poaching surroundings is feat worse, according to Manish Antani, Evil discuss of Globular Services Exercise Gather in the Southern Twist, Ind., state of law steady Barnes and Thornburg. Alternatively, a goodish recruiter module always try poaching, according to Jordan Rayboy, Coil of recruiting house, Rayboy Insider Investigate. With newer tools, the methods of recruiting are also changing. Methods of Ethnical networking that touch conjunctive candidates to fact part groups on venues suchlike Facebook and LinkedIn are also being victimized by department same Joel Chapperella, Evil president of marketing for U.S Staffing crunchy.
Last edited by nitin89; 03-30-2011 at 07:46 PM.