Infosys subpoenaed in US visa investigation

Infosys, India’s second largest IT outsourcing provider, has been asked to produce documents relating to its applications for visas allowing staff to work in the US.  

The subpoena relates to an investigation by the US District Attorney into the company’s visa practices.

That investigation is connected to, but separate from, a suit brought against Infosys by one of its US employees in February. In that suit, Jack Palmer claimed that Infosys sent Indian staff to the US on B-1 visas, which cannot legally be used for full time work. Infosys said at the time that it took the allegations seriously.

When Information Age first reported on Palmer’s suit against Infosys, someone claiming to be a Republican candidate for congress in California left a comment on the story alleging that the company has a "foul reputation" in Silicon Valley. The comment has been removed due to other, potentially libelous accusations.

Infosys, meanwhile, has warned investors that changing attitudes towards outsourcing in the US and UK may damage its business in the future.

“Recently, some countries and organisations have expressed concerns about a perceived association between offshore outsourcing and the loss of job,” it said in a regulatory filing. “Legislation in certain countries in which we operate, including the US and the UK, may restrict companies in those countries from outsourcing work to us or may limit our ability to send our employees to our client sites.”

This helps explain why Infosys is now looking further afield for growth opportunities. Earlier this week, it announced that it will triple the number of staff it employs in China over the next three years. China is not only a source of talent, it said, but a growing market of IT services.

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Ben Rossi

Ben was Vitesse Media's editorial director, leading content creation and editorial strategy across all Vitesse products, including its market-leading B2B and consumer magazines, websites, research and...

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