Infosys has received a subpoena from a Grand Jury in the US District Court (DC) for the Eastern District of Texas. The subpoena requires Infosys to provide documents and records related to its sponsorships for and uses of B1 visas.
You should recall that Senator Grassley had, in a letter to DoS and DHS (April 14, 2011), questioned the “B-1 in lieu of H-1B” policy, stating that it may be misused to evade the H-1B visa cap, referencing the Palmer vs. Infosys case.
Comparative cost of H1-B Vs L-1 Vs B-1 US Visas:
It is evident from the chart above that B-1 Visas cost Indian IT Companies mere 20% of the regular H-1B Visas. By availing B-1 Visas Indian IT companies evade Fees Under Public Law 111-230, Education and training fees.
With the loophole in the US Immigration law now being plugged, Indian IT companies will have to shell an additional $25 to $40 Mn every year by either hiring local Americans or sponsor programmers on H-1B Visa. Additionally, Indian companies face a threat of a one-time fine for misusing the B-1 Visa.
It is surprising to us that terrible Inflation, sky rocketing office space rentals, dirty and poor city infrastructure in the Indian IT Capital of Bangalore, the Software Labor Trading Arbitrage still exists. How long ?