Infosys Under Investigation For Visa Fraud

An IT Professional

Last week, a host of India computer consulting firms convinced the government to consider taking the U.S to the World Trade Organization for the added fines associated with H1-B visas that allow for them to bring Indian labor to the U.S.  On Thursday morning, CBS This Morning’s senior correspondent John Miller added a dash of spice to that story, one that will have Infosys (INFY) fighting an image that it uses the foreign business visa program to depress wages.

See: Infosys’ Illegal Labor Allegations–CBS News

Infosys is one of India’s biggest IT firms, along with Tata Consultancy Services and Wipro. The U.S. is a major market for them. Late last year, Tata Consultancy’s local president Surya Kant said in a Forbes interview that the company was struggling to hire computer engineers. American engineers lacked some of the necessary experience. While Kant did not say TCS was bringing in foreigners to fill in the gaps, Infosys and other major computer companies, including Microsoft, are bringing in workers from India to do what they say American engineers cannot.

On CBS, Miller spoke with Infosys whistleblower Jay Palmer, a consultant for the firm who said that the company could just have easily found local IT specialists to do what they were bringing foreigners in to do, at a fraction of the cost. Infosys said in a statement televised by CBS that Palmer’s “allegations make for an interesting story, but it is not the facts.” And added that a judge and jury will have the final say on Palmer’s accusations later this summer in an Alabama civil court case.

The Times of India reported last week that visa restrictions were causing huge disruptions in the onsite activities of Indian IT companies, but quoted an unnamed source from one of the major IT firms in Bangalore that the program did keep labor costs down because temporary Indian labor was cheaper than temporary U.S. labor. Visa rejections are currently at an all-time high and companies are not able to send enough support and maintenance staff to their client locations overseas to complete projects on time.

“We promised a client in the (San Francisco) Bay area that we would be sending 15 people from India to support it onsite. But we could send only three people, the rest were denied visas,” said the global sales head of an IT firm in Bangalore who did not want to be named. He said the client was very unhappy because it meant they had to depend on available alternatives, which were either “costlier or of poorer quality” the paper reported.

See: Visa Rejections Hurting IT Companies In U.S.–The Times of India

India Software IT Cos Not Happy With U.S. Visa Rule–Forbes

Miller’s Infosys investigation leads to call for visa review

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  1. Skip Patel says:

    by c_developer April 15, 2012 10:30 PM EDT
    The GSE’s supported by your TAX dollars have one of the larger groups of Indian H1Bs working for them. TCS provides 100’s of H1Bs for these companies. They look out for each other also.

    In Northern Virginia, there are over 40,000 Indian immigrants along the so-called Dulles Corridor between Fairfax and Loudoun counties, which rank as the two richest counties (measured by median household income) in the nation. Since the middle of the last decade, Loudoun’s population has grown faster than that of any other U.S. county. And more than 5 percent of its residents were born in India. This is a classic case of “chain immigration”–the number of foreign-born Indians in the Dulles Corridor has grown ninefold since 1980.

    I work at one of the GSEs. At my firm, at the current team, we have 12 people, 10 are Indian and 8 are h1b, hired in last 4 years. What are the odds of having 12 IT team members with 10 Indian?? No African Americans, no Hispanics, No Europeans. These are good jobs too. That is my current personal experience, and within our IT group of 180 people, approximately 120 are Indian. Not sure H1B status but large percentage. Any reporter could get listing of the IT employees. Take a look at the names, while it is a generalization Indian names are very different than US names. The Indians control the IT group now and will hire, with a wink and a nod, other Indians.

  2. babbazee says:

    5 Listen, my dear brothers and sisters: Has not God chosen those who are poor in the eyes of the world to be rich in faith and to inherit the kingdom he promised those who love him? 6 But you have dishonored the poor. Is it not the rich who are exploiting you? Are they not the ones who are dragging you into court? 7 Are they not the ones who are blaspheming the noble name of him to whom you belong?
    ~ James 2

  3. Skip Patel says:

    BTB (USA)
    13 Apr, 2012 06:54 PM

    My wife, an IS person works for a fortune 500 company at its corporate office. A couple of years back her office laid of many IT personnel and outsourced the work to IBM in India. Ever since then the IT service quality has deteriorated. The people in Hyderabad and Bangalore keep changing, do not follow clearly stated instructions, put new people frequently who have no clue. As a result of the Indian support being shoddy the company has decided to gradually bring back jobs to the US. Top level CEO’s think they save money, but in many cases it leads to project cost overruns, delays and frustration for US staff. Work is gradually moving from India to other countries. Indians should thank China for not having English in schools.

    Sid (the Netherlands.)
    13 Apr, 2012 05:16 PM

    The village people of India dislike the west but are willing to come to Europe/America the illegal way. Hypocrite no.1 ! Did they forget the word KARMA? No wonder India remains a 3th world country as the majority is illiterate and underdeveloped. Wake up goverment!!! Stop giving Indians such a bad name world wide. Care about the people, educate them.

  4. Skip Patel says:

    From Reader “Red” Boynton:

    According to the Broad Education Foundation:

    — 68% of American eighth graders can’t read at grade level and won’t catch up

    — American students rank 21st in science compared to students in 30 industrialized countries — America’s top math students rank 25th out of 30 countries

    In 2000, the last time The World Health Organization ranked the top health systems in the world, the U.S. was 37th, behind France (first); Oman (eighth); and Chile (33rd).

    Maybe part of the problem is the American culture rewards weakness. If America wants to be the absolute best, we must stop telling our children that they are so exceptional when they are not. If your kid can’t shoot, pass, dribble or rebound, guess what? They are terrible at basketball and should find a new sport. If it’s just about the enjoyment, fine. But if it’s about winning, they can’t cut it.

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