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

  • Strong jobs data hurt U.S. stocks, bonds; dollar soars
    Strong jobs data hurt U.S. stocks, bonds; dollar soars

    A robust U.S. jobs report raised concern in markets on Friday that the Federal Reserve may raise interest rates sooner than previously thought, hammering U.S. stock and bond prices. News the U.S. unemployment ... …

  • At long last, Dow gets a taste for Apple
    At long last, Dow gets a taste for Apple

    Apple Inc (AAPL.O), the largest U.S. company by market value, will join the Dow Jones industrial average (.DJI), replacing AT&T Inc (T.N), in a change that reflects the dominant position of the iPhone maker in the U.S. economy and society. The decision to nudge aside AT&T, which has been part of the Dow for the better part of a century, is a recognition of the way in which communications and technology have evolved over the last several decades. The action, by S&P Dow Jones Indices, had been …

  • Oil in biggest weekly drop since January on dollar, rate-hike fear
    Oil in biggest weekly drop since January on dollar, rate-hike fear

    Crude oil prices closed down on Friday, with benchmark Brent losing its most in a week since January, as a resurgent dollar and fear of a U.S. rate hike diverted attention from the shrinking number of rigs drilling for oil in the United States. Many U.S. Federal Reserve officials consider that to be full employment, and the central bank could decide on an interest rate hike in June. Benchmark Brent oil (LCOc1) settled down 75 cents, or 1.2 percent, at $59.73 a barrel. "Today's focus is on …

  • U.S. may settle with corporations without going to court - official

    The U.S. Justice Department is considering altering how it settles criminal cases with corporations to avoid going to court altogether, amid the increasingly active role judges have taken in reviewing such deals, a top official said on Friday. Leslie Caldwell, head of the Justice Department's criminal division, said prosecutors may move away from using so-called deferred prosecution agreements for corporate settlements after a judge in February rejected a $10.5 million accord with Dutch …

  • Greece wants immediate talks with Troika on bailout, eyes follow-up de …
    Greece wants immediate talks with Troika on bailout, eyes follow-up de …

    Greece asked euro zone countries on Friday for an immediate start of technical talks with international creditors on the first batch of reforms that would help conclude its current bailout programme and allow the disbursement of more loans. Until now, it has rejected talks with the three institutions that have supervised it so far -- the European Central Bank, European Commission and the International Monetary Fund -- on implementing reforms. If it concludes the bailout, which means …

  • U.S. labour market flexes muscles as February payrolls soar
    U.S. labour market flexes muscles as February payrolls soar

    U.S. employers stepped up hiring in February and the jobless rate fell to its lowest level since the spring before President Barack Obama took office, which could put pressure on the Federal Reserve to raise interest rates in June. Nonfarm payrolls increased 295,000 last month after rising 239,000 in January, the Labor Department said on Friday. The unemployment rate dropped two-tenths of a percentage point to 5.5 percent, the lowest since May 2008, slipping into territory that some Fed …

  • GSK sacks 110 China staff in wake of drug bribery case - sources
    GSK sacks 110 China staff in wake of drug bribery case - sources

    Drugmaker GlaxoSmithKline (GSK.L), which was fined 3 billion yuan ($479 million) in China last year for bribery, is dismissing 110 employees in the country for misconduct, people familiar with the matter said on Friday. The British company confirmed it had taken disciplinary action against staff whose conduct contravened its values and code of conduct but declined to specify the number involved. The dismissals follow detailed investigations into wrongdoing by employees in the wake of the …

  • Cash-strapped Greece repays first part of IMF loan due in March
    Cash-strapped Greece repays first part of IMF loan due in March

    Greece repaid on Friday the first 310 million-euro instalment of a loan from the International Monetary Fund that falls due this month, as it scrambles to cover its funding needs. Prime Minister Alexis Tsipras's newly elected government must pay a total of 1.5 billion euros to the IMF this month, but it is rapidly depleting its cash. "The payment of 310 million euros has been made, with a Friday value date," a government official told Reuters, requesting anonymity. It faces a decline in tax …

DON'T MISS

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    26.45+1.20+4.75%
    SUZLON.BO
    17.90-0.25-1.38%
    SRSREAL.BO
    19.15-0.50-2.54%
    UNITECH.BO
    28.80+0.85+3.04%
    JPASSOCIAT.BO
    12.850.000.00%
    SAMLEPU.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    14.000.000.00%
    ZPPOLYSA.BO
    126.00+21.00+20.00%
    PUNJABCHEM.BO
    546.80+91.10+19.99%
    AEGISLOG.BO
    1,203.75+200.50+19.99%
    SMLISUZU.BO
    64.60+10.75+19.96%
    AARYAGLOBL.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    1,823.400.000.00%
    PERSISTENT6.BO
    858.400.000.00%
    YESBANK6.BO
    415.300.000.00%
    UPL6.BO
    471.50-99.00-17.35%
    PFLINFOTC.BO
    117.00-21.00-15.22%
    LOOKS.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.