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Infosys visa fraud settlement could impact IT offshoring model and customers

Stephanie Overby | Nov. 1, 2013
An agreement by the Indian IT service provider to pay $34 million to settle claims of visa fraud and abuse could force more outsourcers to reconsider their business models.

"While the number of visas being offered is growing and will probably stay at the higher current levels, the regulations on how and who will receive a visa will be stricter, most likely impacting the outsourcing community," says Kushner of Alsbridge. "[However] as every new regulation comes out, creative leaders will attempt to determine new corporate, organization, or delivery structures that can be leveraged to keep costs down while complying with the law."

In a statement, Infosys denied any claims of systemic visa fraud, misuse of visas for competitive advantage, or immigration abuse, saying it wanted to remove the uncertainty of prolonged litigation.

 

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