[QODLink]
Central & South Asia

Indian outsourcing firm faces $35m US fine

US newspaper says Infosys undercut competitors in bids by putting workers on cheaper visitor visas instead of work visas

Last Modified: 29 Oct 2013 07:30
Email Article
Print Article
Share article
Send Feedback
A probe by the Department of Homeland Security concluded that Infosys used easy-to-get B1 visas [EPA]

The US government plans to punish Indian outsourcing giant Infosys Ltd with the largest immigration fine ever for seeking visas fraudulently for workers at big clients in America, according to a Wall Street Journal report.

Infosys is accused of putting workers on visitor visas rather than work visas. The former are much easier and cheaper to obtain than the latter.

The fine is expected to be about $35m, the paper said on Tuesday, quoting people familiar with the matter.

A probe by the Department of Homeland Security and the State Department concluded that Infosys used easy-to-get B1 visas, which are meant for short business visits, to bring an unknown number of its workers to the US for long-term stays, the people were quoted as saying.

The fine will be announced on Wednesday, the Wall Street Journal said.

It said a company spokesman confirmed a resolution will be announced on Wednesday and said Infosys had set aside $35m to settle the case and cover legal costs.

With its alleged practice Infosys could undercut competitors in bids for programming, accounting and other work performed for clients, the Journal said.

Infosys clients have included Goldman Sachs Group, Wal-Mart Stores Inc and Cisco Systems Inc.

Infosys is known as an outsourcing company that does India-based computing and other technology services for Western clients.

But it also features thousands of US-based employees who develop and install software for accounting, logistics and supply-chain management in the retailing, finance and manufacturing sectors, the Wall Street Journal said.

257

Source:
Agencies
Email Article
Print Article
Share article
Send Feedback
Topics in this article
Country
Organisation
Featured on Al Jazeera
As Western stars re-release 1980s charity hit, many Africans say it's a demeaning relic that can do more harm than good.
At least 25 tax collectors have been killed since 2012 in Mogadishu, a city awash in weapons and abject poverty.
Tokyo government claims its homeless population has hit a record low, but analysts - and the homeless - beg to differ.
3D printers can cheaply construct homes and could soon be deployed to help victims of catastrophe rebuild their lives.
Featured
Pro-Russia leaders' election in Ukraine's east shows bloody conflict is far from a peaceful resolution.
Critics challenge Canberra's move to refuse visas for West Africans in Ebola-besieged countries.
A key issue for Hispanics is the estimated 11.3 million immigrants in the US without papers who face deportation.
In 1970, only two mosques existed in the country, but now more than 200 offer sanctuary to Japan's Muslims.
Hundreds of the country's reporters eke out a living by finding news - then burying it for a price.