Will ensure Infosys shuts US ops: Jack Palmer

Bangalore: Leading IT companies are spending sleepless nights on the recent visa allegations against them.

Infosys, Tata Consultancy Services (TCS), Wipro and Cognizant Technologies, have been at the receiving end in the last couple of months. Two individual lawsuits have been filed against Infosys over the last six months alleging misuse of the H1B visa and age discrimination in local hiring, said a report published in The Economic Times.

Though the company refused to comment on this issue when asked during their press meet in Mysore last month, the IT major has a long legal battle ahead.

infy1_600

Jack Palmer who has accused the company of large scale visa fraud in the US is not ready for an out of court settlement. A report in Economic Times says that Palmer wants the case to go to court and see it to the end after Infosys said last week his claims were false and exaggerated.

He also said Indian companies were benefiting at the expense of the American economy, a charge the Indian IT industry disagrees with. Indian software and services industry body NASSCOM has said in the past that the cost savings they provide help make U.S. firms more competitive.

The case threatens to affect Infosys's North American businesses from where it gets 60 per cent of its revenue.

Earlier last week, the IT bellwether came hard against the whistleblower, calling Palmer's commentary "full of inaccuracies, exaggerations and falsehoods."

infy2_600"The commentary submitted by Palmer (through US Senator Charles Grassley) to the senate judiciary subcommittee on immigration, refugees and border security, is full of inaccuracies, exaggerations and falsehoods," said Paul N Gottsegen, chief marketing officer of Infosys, in a statement.

Infosys, which has been caught in a whirlwind of visa issues that was affecting its relationship with customers, said it would strive to see that the company's integrity and compliance with law were not comprised.

But it is just not Infosys that is at the receiving end. Even MNCs like Cognizant have been accused of misusing the visa rules. At the ground level, companies are getting hit badly with intense scrutiny and visa rejections. V Balakrishnan, CFO, Infosys Ltd had recently told us in an interview that L1/H1B visa rejections had gone up by almost 50 per cent.

However, the problem is more than what has been reported. A columnist here clearly states that there is some flaw in the visa rules. So are the companies interpreting it wrongly or are their lawyers using this loophole to get more visas? No one has clarified on this stance but this case is definitely going to have a major impact on the Indian IT  companies.

Latest News

  • Buffett defends Berkshire's Coke stake, warns on BNSF
    Buffett defends Berkshire's Coke stake, warns on BNSF

    Warren Buffett on Saturday defended several of Berkshire Hathaway Inc's larger or struggling investments, including Coca-Cola and the BNSF railroad. Speaking to tens of thousands of shareholders at Berkshire's annual meeting in Omaha, Nebraska, Buffett and Vice Chairman Charlie Munger also touched on many other issues including the 2016 U.S. presidential election, the risks of derivatives, and big losses at a mutual fund closely associated with Berkshire. Buffett, a supporter of Democrat …

  • Softness in US dollar to stiffen rupee

    Mumbai, April 30 (IANS) Softness in the US dollar, along with healthy inflow of foreign funds, are expected to support the Indian rupee during the upcoming week. "The rupee has broadly remained stable ... …

  • Global headwinds subdue equity markets

    Mumbai, April 30 (IANS) Negative global cues, combined with the logjam in parliament and profit booking, depressed the Indian equity markets during the just concluded weekly trade. This resulted in the equity markets trading in a narrow range due to a neck-and-neck race between the bulls and the bears. Besides, the broader markets underperformed the headline indices and closed marginally in the red, led by profit booking. …

  • Asia Pacific driving revenue generation in digital marketing: Adobe

    New Delhi, April 30 (IANS) Our growth in the Asia Pacific (APAC) region is set to explode and India is one of the key engines to drive Adobe's revenue generation in the digital marketing space, a senior Adobe executive has said. "If you look at the total revenue of Adobe last year, it was $4.896 billion and Asia Pacific contributed nearly 14 percent of the entire revenue," Umang Bedi, managing director (south Asia), Adobe, told IANS. …

  • India's forex increased marginally to $361 bn

    Chennai, April 30 (IANS) India's foreign exchange reserves increased marginally to $361.60 billion as on April 22, 2016, the Reserve Bank of India (RBI) said. According to RBI's forex data the reserves ... …

  • Vodafone India mandates for up to US$3 billion IPO

    By Anuradha Subramanyan - UK telecom giant Vodafone has mandated Bank of America Merrill Lynch, Kotak and UBS as joint global coordinators for the IPO of its Indian unit, according to two sources. The ... …

  • Vodafone picks BofA, Kotak, UBS, other banks for India IPO - sources
    Vodafone picks BofA, Kotak, UBS, other banks for India IPO - sources

    SINGAPORE/HONG KONG, (Reuters) - British telecoms operator Vodafone has picked Bank of America Merrill Lynch (BofA), Kotak Investment Banking and UBS as joint global coordinators of its Indian unit's IPO, people familiar with the matter said, kicking off its long-awaited listing plan. The IPO is expected to raise between $2 billion–$2.5 billion, Reuters previously reported, which, at the upper end, would make it India's biggest stock market listing since state-owned Coal India Ltd raised $3.5 …

  • Facebook hit with lawsuit over plan to issue new stock
    Facebook hit with lawsuit over plan to issue new stock

    A Facebook Inc (FB.O) shareholder filed a proposed class action lawsuit on Friday in a bid to stop the company's plan to issue new Class C stock, calling the move an unfair deal to entrench Chief Executive Mark Zuckerberg as controlling shareholder. The lawsuit, filed in the Delaware Court of Chancery, followed the social networking company's announcement on Wednesday of its plan to issue the shares. The rejiggering of Facebook's share structure is effectively a 3-for-1 stock split. …

DON'T MISS

  • "The system is becoming more and more reliable"

    Ajay Bhushan Pandey, DG and Mission Director, UIDAI, spoke to Business Today on Aadhaar enrolment crossing the one- billion mark. …

  • Aadhaar's Identity Crisis

    Aadhaar enrolments have crossed a billion. But will the project make the desired impact on the ground? …

  • Keepers of the Law

    Mumbai-based Complykaro is helping companies comply with laws related to sexual harassment at the workplace. …

  • Costly Setback?

    SKS Microfinance's failure to win a small finance bank licence, even as its competitors got them, is likely to hit its growth prospects hard. …

  • Price-less

    The Mi 5 is a power-packed flagship smartphone with the best of features and comes at an unbelievable price. …

  • Impeccable

    Be it display, usability, camera or sound quality, the 9.7-inch iPad Pro is a spectacular tablet, but comes at a high price. …

  • Honey, i(Phone) Shrunk the Screen!

    Apple has relaunched a 4-inch iPhone in a market flooded with big-screen phones. Will this bring smaller screens back on the shelves? …

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    14.99+0.75+5.27%
    SUZLON.BO
    20.65-0.50-2.36%
    NHPC.BO
    74.00-1.90-2.50%
    SPICEJET.BO
    236.60-3.55-1.48%
    ICICIBANK.BO
    69.90-4.85-6.49%
    JINDALSTEL.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    153.10+25.50+19.98%
    SMRUTHI.BO
    41.80+6.80+19.43%
    NEOINFRA.BO
    19.06+2.77+17.00%
    ASSOSTNB.BO
    131.45+18.25+16.12%
    TATAMETALI.BO
    206.70+26.80+14.90%
    ANUHPHR.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    32.85-7.85-19.29%
    GUJFOIL.BO
    13.70-2.65-16.21%
    OFSTECH.BO
    65.85-9.00-12.02%
    KAMADGIRI.BO
    81.50-11.00-11.89%
    SETFBSE100.BO
    21.05-2.45-10.43%
    INTLCONV.BO

QUOTES

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.