Infosys is the third largest player in the Indian IT market and now it faces an employee lawsuit that could lead to a lot of trouble. The firm makes most of its money from providing outsourcing services to customers in the U.S. and Europe.
According to WSJ Satya Dev Tripuraneni, a former accounts manager at Infosys’ Silicon Valley office, the company started issuing threats and eventually demoted him after he accused his employer of abusing visa laws. Tripuraneni filed suit in the federal court for the Northern District of California, and one of his main claims is that Infosys used short-term business-visit (B-1) visas for outsourcing work to mitigate the higher cost of H-1Bs.
The firm responded with an internal investigation shortly after Tripuraneni blew the whistle, but today it released a statement that calls the accusations “completely unfounded.” A spokesperson told the The Hindu Business Line,
“We can unequivocally state that there is absolutely no evidence of any sort of retaliation against or directed at Tripuraneni. This investigation has confirmed that his claims are completely unfounded.”
Infosys is in a quite a jam. It is now facing two lawsuits, including one from 201 filed by another former employee by the name of Jack Palmer, plus the still on-going Senate investigation that the latter set off at the time. It also recently halved its revenue guidance for this year citing weakening demand from companies in markets.
Larger rival TCS is also under pressure from the authorities. India’s highest valued firm was also sued a while back for allegedly blackmailing workers out of their tax refunds, as well as refusing to pay the double salary that was promised in the plaintiffs’ employment contracts. This is a class-action lawsuit – Tata has over 10,000 has a staff of over 10,000 in the U.S.