InfosysBusiness:Infosys says business could be hit if US restricts visa programme

Faced with lawsuit by a former employee, Infosys Technologies has said that his business could be affected if the U.S. decides to limit the visa program as a consequence of the case.

Earlier this year, Infosys employee Jack Palmer had filed a lawsuit alleging that the company asked him to sign documents that said the workers were headed to the U.S. to have more meetings to work there.

He said this was done to "creatively" to overcome caps H1-B visa.

After his refusal to sign the documents, Palmer said he was threatened and harassed.

"In the event that the U.S. government carries out all actions that limit the B-1 visa program for business or other visa program used, this could materially and adversely affect our business and results of operations, "Infosys said in a filing with the U.S. Securities and Exchange Commission (SEC).

A U.S. Senator sent a letter to U.S. Secretary of State and Secretary of Homeland Security, asking that their respective departments to review the B-1 business visa program and investigate how it is being used by companies, including Infosys.

B-1 business visas are intended for brief use, such as advising clients, attend business conventions or negotiation of contracts.

Infosys said the legislation in some countries, including the U.S. and the United Kingdom, may limit the outsourcing of Infosys work or limit the possibility of sending employees to customer sites.

"Recently, some countries and organizations have expressed concern about a perceived association between outsourcing and job loss.

"... is possible that it could be a change in existing laws or enacting new legislation restricting outsourcing or the imposition of restrictions on the deployment of, and regular wages, work visa holders in the locations customers, which could adversely affect our ability to do business in the jurisdictions in which we operate, especially with government entities, "the company said.

At March 31, 2011, about 10,100 employees (excluding employees of Infosys BPO or employees of its subsidiaries), on H-1B visas, which allow people to stay in the U.S. for up to six years.

Another 2,200 people held visas L-1 (not including Infosys BPO employees or employees of its subsidiaries), allowing employees to stay in the U.S. only temporarily.

Infosys said the uncertainty of the availability of work visas in the U.S. results different expenditures from quarter to quarter. He said, for example, that the company incurred $ 13. 3 million in visa charges in the three months ended September 30, 2010, compared to $ 7.7 million in the three months ended March 31, 2011.

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