US opens probe against TCS, Infosys for H1-B visa violations

An investigation against two of the biggest Indian outsourcing companies has been initiated by the US government for possible violations of H1-B visa rules.

The Department of Labour has opened the investigation against Tata Consultancy Services and Infosys for possible violations of rules for visas for foreign technology workers under contracts they held with an electric utility Southern California Edison. The layoffs are raising new questions about how businesses and outsourcing companies are using the temporary visas, known as H-1B, to place immigrants in technology jobs in the United States.


The move by the Labour Department comes days after the NYT had reported that hundreds of employees at entertainment giant Walt Disney were laid off and replaced with Indians holding H1-B visas.

About 250 Disney employees were told in late October last year that they would be laid off and many of their jobs were transferred to immigrants on H1-B visas brought in by an outsourcing firm based in India, the report had said.

– Spadman