Tighter U.S. Visa Scrutiny Alters Landscape for Indian Tech Firms

Posted: 5/26/2011

BY MEGHA BAHREE AND AMOL SHARMA

MUMBAI-India's technology-outsourcing industry, which has rallied back in recent years from a major accounting scandal and the global recession, now faces a threat to its business model as the U.S. ratchets up scrutiny of the way Indian outsourcing companies use visas.

U.S. authorities are investigating whether Infosys Technologies Ltd., India's second-largest outsourcing specialist by revenue, abused a temporary business visa program to get employees into the country for longer-term assignments, according to people familiar with the matter.

The Infosys probe follows enactment of a U.S. law last year that significantly increased fees for skilled-worker visas. The measure was backed by ...

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