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

New York  (PTI): The US government has opened an investigation against two of the biggest Indian outsourcing companies for possible violations of H1-B visa rules, according to a media report.

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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 New York Times said.

The power company had recently laid off more than 500 technology workers amid claims that many of those laid off were made to train their replacements who were immigrants on the temporary work visas brought in by the Indian firms Senators Richard Durbin of Illinois and Jeff Sessions of Alabama announced the investigation after they were notified by the department, the report said.

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.

It had also cited the layoffs at the Southern California Edison power utility, saying that 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.”


  1. Any surprise? – the system has been abused for over 2 decades! I am so glad that the US government at last has initiated investigation into this. Much of the fault lies with the US as with any other issue such as immigration – abuse is never checked nor stopped. If one reads about test paper leaks and fake degrees, one wonders how many of these H1B holders are genuine? This abuse started back in mid-1990s with the Y2K fear and the abuse went unchecked. I hope both the American and Indian companies involved if found guilty, are fined substantially for the job losses incurred. These companies should be barred from getting any H1B visa allocations in the future.

    • Mr. Dinesh, when this hidden story of massive tricks in the H-1 B visa program is revealed, the Federal Government will slap them very heavily which will be a lesson for them and the rest. I am sure that thousands of unqualified candidates have landed in the U.S. through this program, also replaced thousands of workers from the U.S. labor market through placing the less salaried recruits from India. After this, as you have said, there will be very high restrictions to have software candidates from India. Now, many countries of Asia and European countries like Rumania are producing massive number of software candidates, demanding lower salary.

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