‘Significant errors’ found in Infosys US visa investigation

- Posted in America by Visa Bureauon 24 April 2012

Infosys confirmed last week that it was being investigated over concerns of misuse of US visa applications for its workforce yet refused to quantify the potential cost of any fines or penalties that could be incurred.

After the US Department of Homeland Security confirmed it had found a 'significant percentage' or errors in applications from Infosys, shares in the company, which is based in Mumbai, fell by 4%.

Infosys is India's second largest outsourcing firm with operations in over 30 countries yet the company depends on its tens of thousands strong workforce based in America for more than 60% of its revenue.

The company denies any wrongdoing and refuted the allegations when they were first made public.

India has already complained to the World Trade Organisation over perceived discrimination in visa denial rates and Indian companies, including Infosys, have contributed to a growing friction between the two countries as they prepare for tighter restrictions governing their business activities in the US.

As America prepares for November's presidential election, US immigration looks set to be a crucial topic with President Barack Obama promoting a policy of 'insourcing' - in direct conflict with Infosys’ and its peers’ reliance on using cheap, imported labour in the US market.

"In the event that any government undertakes any actions which limit any visa program that we utilize, or imposes sanctions, fines or penalties on us or our employees, this could materially and adversely affect our business and results of our operations," said Infosys in a statement.

The American Visa Bureau is an independent migration consultancy specialising in helping people from Visa Waiver Program (VWP) countries make their ESTA application.