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.


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

  • SoftBank-backed startup Housing.com ousts CEO

    Indian property firm Housing.com, backed by Japan's SoftBank, ousted its co-founder and chief executive officer on Wednesday, marking the first major management upset at one of the country's largest start-ups. Housing.com's boss Rahul Yadav had been at odds with his investors for months and even resigned in April in a letter where he was highly critical of the company's investors. India's start-up companies, still mostly run by their founders, have received billions of dollars from investors, …

  • After wifi at the Taj, Modi revives campaign for "digital" India
    After wifi at the Taj, Modi revives campaign for "digital" India

    NEW DELHI/MUMBAI (Reuters) - Prime Minister Narendra Modi urged more companies to make electronic and digital goods on Wednesday, reviving his campaign promise to bridge India's digital divide backed by over $70 billion in investment pledges. Launching a "Digital India Week" aimed at popularising the government's push to connect 250,000 villages by 2019, Modi spoke of the need to boost local manufacturing of electronics - the country's largest import after oil. "Why can't we make quality …

  • Interest cost dent auto sales, marginal rise in June

    Leading players in the automobile industry reported marginal to negative sales growth for last month. While Maruti and Hyundai posted growth in sales, home-grown players such as Tata Motors and Mahindra reported mixed results. The country's largest passenger car manufacturer Maruti Suzuki's sales inched up 1.8 percent at 114,756 units -- up from 112,773 units sold in the corresponding month of 2014. …

  • Wall Street rises sharply on renewed Greece hopes

    U.S. stocks rose sharply in early trading on Wednesday after Greek Prime Minister Alexis Tsipras signaled he was prepared to accept creditors' bailout offer with some conditions. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite all rose nearly 1 percent, with financial stocks leading the gains. Tsipras has sent a letter to the creditors outlining conditions for Athens' acceptance of a loan offer, a day after Greece defaulted on a 1.6 billion euro repayment to the …

  • Auto Expo 2016 to be held from February 5-9

    New Delhi, July 1 (IANS) Auto Expo 2016 will be held February 5-9 at the India Expo Mart and Centre in Greater Noida, it was announced on Wednesday. The Auto Expo's B2B sister event -- The Component Show 2016 -- will be organised from February 4-7, 2016, at Pragati Maidan in New Delhi, the organisers said in a statement. Auto Expo, the Indian auto industry's biennial showpiece event, is organised by the Automotive Component Manufacturers Association (ACMA), Confederation of Indian Industry …

  • Honda Motorcycles, Eicher Motors log sales growth in June

    Chennai, July 1 (IANS) Two wheeler makers Honda Motorcyle & Scooter India and Eicher Motors on Wednesday said they closed last month with higher sales volumes as compared to sales volumes logged in June 2014. In a statement, Honda Motorcycle said it sold 348,793 units last month up from 323,136 units sold in June 2014. On the other hand, Eicher Motors said it logged total sales of 37,341 units of last month up from 25,303 units sold in June 2014. …

  • Oil prices down over 1 pct as Greece defaults, output soars
    Oil prices down over 1 pct as Greece defaults, output soars

    Oil prices fell over 1 percent on Wednesday after Greece became the first developed economy to default on a loan with the International Monetary Fund, and as both U.S. and OPEC production hit new records. Greece's last-minute overtures to international creditors for financial aid on Tuesday were not enough to save the country from becoming the first developed economy to default on a loan with the International Monetary Fund. As a result, IMF Managing Director Christine Lagarde will report to …

  • Healthy macro data buoys markets; Sensex gains over 240 points

    Mumbai, July 1 (IANS) A slew of positive macro economic data coupled with factoring-in of the Greek loan default led Indian equity markets to make healthy gains during the trading session on Wednesday. ... …



  • Most Actives
    Most Actives
    NamePriceChange% Chg
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg


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.
to view quotes in your portfolios.