US Clears Infosys Of H1-B Visa Violation Charges

by CXOtoday News Desk    Sep 08, 2015

Infosys

Infosys on Tuesday said that that the US department of labor had cleared the company of charges of visa violations. 

In June, the U.S. government had opened an investigation against two of the biggest Indian outsourcing companies—Infosys and TCS– for possible violations of H1B visa rules, according to a media report. 

PTI had reported quoting the New York Times that the Department of Labour has opened the investigation against Tata Consultancy Services and Infosys for “possible violations of rules for visas for foreign technology workers under contracts they held with an electric utility Southern California Edison said.

The US government had started an investigation in June into an outsourcing contract involving utility firm Southern California Edison and Indian software exporters TCS and Infosys. 

India’s second largest outsourcing firm Infosys said that the US department of labor had concluded its investigation into labor condition applications filed in the Southern California Edison outsourcing contract and found no visa violations, after reviewing over 145 files.

“Infosys continues to actively recruit and hire talent in the U.S., but while there is a shortage of technology skills, Infosys is a responsible participant in the H-1B program. We do not practice or condone unfair or unethical H-1B visa practices. Our key priority is to operate fairly, ethically and with integrity, which is good business and what our clients expect.” Sandeep Dadlani, EVP and Head of Americas at Infosys said in the statement

Reacting to the development, Sarabjit Kour Nangra, VP Research – IT & Pharma, Angel Broking, said: “The US government has found no visa violations by IT major Infosys. The US had initiated investigation against Infosys and its rival Tata Consultancy Services for possible violations of H1-B visa rules in June 2015.”

“The investigation came on the back of a complaint by two US Senators, who alleged that the two companies used a US visa programme to “replace hundreds of American workers” at a power company. Indian outsourcers are among the biggest recipients H-1B visas, which are intended for highly skilled workers. We maintain our BUY with a price target of Rs 1306 and remain positive on the IT space,” said Nangra.