U.S. Authorities Issue Subpoena for InfoSys during Visa Inquiry
Infosys, the Indian IT outsourcing provider, is looking for growth opportunities outside of the US and UK due to concerns about offshore outsourcing and potential job loss, as well as possible restrictions on their ability to send employees to client sites.
The company has announced that it will increasingly focus on the Chinese market, citing China as a source of talent and a growing market for IT services. This shift comes in connection with investigations by the US Department of Justice into Infosys' visa practices.
Infosys has been asked to produce documents related to its visa applications for US staff, a request that is part of this ongoing investigation. It's important to note that this investigation is separate from a lawsuit brought against Infosys by a US employee in February.
In the February lawsuit, Jack Palmer claimed that Infosys sent Indian staff to the US on B-1 visas, which are not legally suitable for full-time work. Infosys, at the time, stated that it took the allegations seriously.
The investigation and lawsuit are not directly connected to any comments from a Republican congressional candidate in California, despite a comment alleging a "foul reputation" for Infosys in Silicon Valley being made on our platform.
In response to these challenges, Infosys has warned investors that changing attitudes towards outsourcing in the US and UK may negatively impact its business. To mitigate this risk, the company has announced plans to triple the number of staff it employs in China over the next three years.
Despite these challenges, Infosys remains committed to maintaining its high standards and complying with all relevant laws and regulations. The company continues to work closely with authorities to address any concerns and ensure the integrity of its operations.
