ABSTRACT

Canada’s largest fi nancial institution, the Royal Bank of Canada, faced a fi restorm of public anger in 2013. Gordon Nixon, RBC’s CEO, was forced into damage control when news spread that the bank was subcontracting the work of some fi fty in-house investor services employees based in Toronto to iGATE, an Indian ITES-BPM multinational company headquartered in Bangalore (Nixon 2013). Since 2005, iGATE has been working closely with the bank through the RBC Off shore Development Center in Bangalore (Tomlinson 2013a). Reports indicated that iGATE workers brought in from India were making less than $70,000 per year, compared to the $80,000 to $100,000 earned by existing employees. Five years earlier, the IT services company was forced to pay $45,000 to settle charges by the U.S. Department of Justice for discriminating against American citizens in its U.S. facilities. Media reports suggested that the soon-to-be redundant workers were forced to train their own replacements before being left in the cold, adding to the tragedy. Even among the foreign recruits, there was public discontent. A handful of temporary foreign workers complained that iGATE would threaten to send them back to India if they dared to speak of settling in Canada as permanent residents (Tomlinson 2013b).