Infosys has cut a tax deal with the State of New York’s investigation over the amount of taxes the Company paid in 2010-2011 without any criminal or civil charges being filed.
Infosys has made a $1 million settlement with the New York state after it was found that it violated US visa rules by placing employees on a different visa at its clients’ offices in the state.
The settlement was announced on Friday by Attorney General Eric T Scheiderman, saying it resolves whistleblower claims that Infosys, in the course of providing outsourcing services, routinely brought foreign IT personnel into New York to perform work in violation of the terms of their visas.
The company said that the investigation centred on alleged paperwork errors, and the company has not had to confess to doing anything wrong. In fact it denies all allegations that it ever did anything wrong at all.
The company said in a statement that the settlement relates to legal issues already resolved under the 2013 settlement with the US Department of Justice, and was reached by both parties to avoid protracted litigation.
“Infosys maintains robust policies and procedures to ensure adherence with all applicable regulations and laws. Infosys will continue to focus on boosting American innovation, hiring American workers and better serving our valued customers across the United States,” the company said.
Outsourcing giant Infosys has just lost its president, Sandeep Dadlani.
Dadlani says he has quit for what he characterised as an ‘out-of-the-world’ assignment, making it harder for CEO Vishal Sikka to monetise his moves into new software and platforms.
Dadlani was directly responsible for looking after the company’s revenue and margin from new software.
He announced his resignation on professional networking platform LinkedIn late in the night on Thursday.
“I am extremely optimistic about Infosys’ continued success and its strong leadership team. I have decided to pursue my interests elsewhere. Next up: An out-of-the-world assignment! Stay tuned,” Dadlani said.
Infosys later put out a press release announcing Dadlani’s departure and said Karmesh Vaswani and Nitesh Banga would be replacing him.
The Bengaluru-headquartered company appointed Vaswani as the Global Head – Retail, CPG & Logistics and Banga as the Global Head of Manufacturing, a while back.
Outsourcing giant Infosys is getting a little miffed about the ways that the press are reporting concerns about the way the outfit is managed.
Infosys Chief Executive Vishal Sikka said talk in the media on concerns over corporate governance at the software services firm was “distracting”.
For those that came in late, there are appears to be a war of words between Infosys’s founders and its executive.
Sikka insists he is on good relations with the firm’s founders, including N.R. Narayana Murthy.
Infosys’ founders, who own 12.75 percent of the firm, have questioned the pay of Chief Executive Vishal Sikka and severance payouts given to others, including former finance head Rajiv Bansal. According to local media reports, the founders have also questioned the appointment of an independent director.
“All this drama that has been going on in the media, it’s very distracting – it takes away attention – but underneath that there is a very strong fabric that this company is based on and it is a real privilege for me to be its leader,” Sikka said at an investor conference.
Infosys, founded in 1981 when seven engineers, including Murthy, pooled $250 – mostly borrowed from their wives, is expected to address the governance concerns at a separate news conference at 1230 GMT today.
“My relation with the founders is wonderful,” Sikka said at the investor conference hosted by brokerage firm Kotak, adding he typically meets Murthy five or six times a year.
Sikka, a former member of the executive board at German software firm SAP, took the top job at Infosys in 2014, becoming its first non-founder CEO.
The board has backed Sikka, and has brushed aside concerns over CEO compensation, appointment of independent directors and severance pay relating to former employees, saying those were old issues and that full disclosures had been made.
India’s software services exporter Infosys slashed its fiscal-year revenue growth target for the second time in three months over fears that Brexit had hurt its bottom line.
While the outfit reported a 6.1 percent rise in second quarter net profit, Infosys said it now expected revenue to grow between eight percent and nine percent in constant currency terms in the fiscal year to March 31, 2017. Its previous revenue growth target, issued in July, was 10.5-12 percent, which it had already lowered from the 13.5 percent it expected in April.
The outfit depends on North America and Europe for the majority of its revenue. It is worried that hte impending US presidential election and the implications of Britain’s ‘Brexit’ move have caused many clients to delay or abandon outsourcing plans.
Infosys had warned in August it was seeing some “softness” in business after the June Brexit vote in Britain.
Chief Executive Vishal Sikka said in a statement on Friday the revision took into consideration “our performance in first half of the year and the near-term uncertain business outlook”.
The company is still not doing that badly and its reduced numbers are still ahead of analysts’ estimates. Still it is a little ironic that the outfit which is supposed to have been “coming over here and taking our jobs” is also suffering as a result of Brexit.
Indian firm Infosys said today that it has spent $200 million to buy a company that specialises in automation technology.
The Bangalore based company bought Panaya, which is based in New Jersey.
Infosys has been seeking for some years to diversify its business after its initial success came in the outsourcing marketplace.
According to CEO Vishal Sikka, the company wants to leverage the importance of the cloud and AI. Sikka said that buying Panasya was an important step in diversifying its current lines of business.
Panaya sells CloudQuality, automation in the cloud and is intended as an automation method.
Sikka said: “This [acquisition] will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important strategic challenges faced by our clients.”
Infosys has over 165,000 employees worldwide and works in 50 countries.
Indian outsourcers Infosys have business results which were much better than the cocaine nose jobs of Wall Street predicted.
Infosys posted a 13 percent rise in quarterly net profit, as it won more outsourcing contracts from Western clients than many thought possible.
Infosys, which provides IT services to clients including Apple, Wal-mart, and Volkswagen, said profit in the quarter ended December 31 rose to $520.9 million. Analysts, on average, were expecting a profit of $498.8 million.
It has been a tough year for Infosys. It has lost ground to competition and staff have been leaving the building so fast they have had to keep the doors open all the time.
The company has been boosting growth by focusing on high-margin services including artificial intelligence and automation.
The company won 59 new clients in the December quarter, it said in a statement.
Shares in Indian software services company Infosys fell on the Mumbai bourse today after four co-founders of the company sold the equivalent of $1 billion in shares.
They took advantage of an increased share price this year but the move meant the price of the stock fell by nearly five percent.
Co0founders NR Narayana Murthy, K. Denish, Nandan M.Nilekani and the wife of SD Shibulal claimed the sale was to fund “various philanthropic activities”, a statement from the co-founders said.
In a statement, the founders said they had spent mover three decades “nurturing the company”.
Infosys has over 160,000 employees and has fingers in almost every pie, including financial services, aerospace and defence, automative, enery and retail.
The seven co-founders of the company no longer have executive roles on the board, but control nearly 16 percent of the shares.
Some top Infosys executives have cleaned out their desks and been escorted from the building after it was discovered that the outfit had been daring to overcharge the margin king Apple.
Infosys, India’s second-largest IT services exporter, said on Tuesday it had fired Abraham Mathews, chief financial officer of its Infosys BPO unit, for failure to comply with the company’s code of conduct.
Infosys BPO chief executive officer Gautam Thakkar resigned on “moral grounds” and would leave the company on November 30, Infosys said. It did not give details about the charges against Mathews.
“The financial irregularities are not material in nature and the company has already made required disclosures. The company has taken disciplinary action on employees,” the company said. The irregularities in Infosys BPO’s dealings with Apple came out during an internal audit.
Though the audit showed that the financial impact of the wrongdoing on the company was minimal, Infosys decided to take a tough stance to demonstrate its “zero-tolerance policy for any improper conduct,” he said.
Reports from India suggest that six more people will be fired soon after investigations revealed that they had produced inflated invoices and allegedly overbilled Apple for many months.
The thought of Apple being overcharged for a service that actually cost a lot less, strikes us as a little ironic and would be confirmation of the doctrine of karma, if we believed in that sort of thing.
Infosys earlier this year brought in Vishal Sikka as its new CEO to chart a new strategy for the company, once a trendsetter for India’s more than $100 billion IT outsourcing industry. Infosys has struggled in recent years to retain staff and market share, the fact it has to fire a few cannot help things.
A US court will hear how the Indian outsourcing outfit Infosys is alleged to have adopted racist policies against Americans.
The case, filed in a federal court in Wisconsin, is from four IT workers around the country who are suing the company for “ongoing national origin and race discrimination”.
The court documents include an account by Samuel Marrero, who worked as a recruiter in Infosys’s talent acquisition unit from 2011 until May 2013.
According to him recruiters were encouraged to focus their efforts on Indian candidates and “stick to the talent we’re used to”,
Marrero asked if the company only wanted Indian talent and was told by managers “Yes. They know our style and culture”.
The Infosys officials are identified in the lawsuit, one with the title of “senior vice president and global head,” the other as a “global enterprise officer lead.”
Marrero said that he “frequently complained” to higher-ups at Infosys during these weekly calls that many of the highly qualified American candidates they had presented were being rejected in favour of Indians.
As a result 90 percent of Infosys’ workforce is South Asian, and the high percentage is intentional.
In about October 2012, in response to one of these complaints, Infosys’ global enterprise lead allegedly said, “Americans don’t know shit”.
It appears that the downturn in the outsourcing market is over with Infosys, India’s second-largest software services exporter, beating estimates.
The company reported a 21.6 percent rise in quarterly net profit and retained sales growth outlook for this year on surging demand for outsourcing services.
The news is a little surprising as Infosys seems to been reeling under a staff exodus and loss of market share to rivals.
Vishal Sikka, a former senior executive at German software Company SAP took over as CEO last month seen nearly a fifth of his staff leave after 18.7 per cent left in the last quarter.
Infosys added 61 customers in the quarter, maintained its revenue growth forecast for the year to March 2015 at 7-9 percent, as expected.
Consolidated net profit for the quarter ended June 30 rose to $480.20 million. Revenue in the quarter rose 13.3 percent to $212 million.
Three US tech worker groups have launched a labour boycott of IBM, Infosys and Manpower.
Bright Future Jobs, the Programmers Guild and WashTech claim that the outfits discourage US workers from applying for US IT jobs by tailoring employment ads toward overseas workers, writes Nick Farrell.
In one case a Manpower subsidiary has advertised for Indian IT workers to come to the US for openings anticipated more than a year in advance. The advertisements in India are being placed even though the nature of the tech industry is so fast-paced that staffing projections cannot be adequately foreseen.
Not surprisingly the three groups believe that companies should look first for US workers to fill US IT jobs.
The main goals of the boycott are “attention getting” and putting pressure on the IT staffing firms to change their practice.
Infosys denied that it avoids recruiting US IT workers and pointed to job adverts for 440 active openings across 20 states in the US. Many of the jobs require a US master’s degree in business administration.
However there is a general concern that tech companies are lobbying for a relaxation of visa restrictions to cope with a “tech skills shortage” which is not really there. Instead they are bringing in foreign developers who are cheaper than their US counterparts.
While many companies are tightening their belts and looking for austerity measures until the economy picks up, outsourcing outfit Infosys is going in the opposite direction.
According to Indian newspaper, the Economic Times, the first concrete step made public after the return of founder Narayana Murthy to an executive role is to jack up all employee’s salaries.
The company will increase pay by an average of eight percent for staff in India and three percent for overseas staff.
The announcement was made to the stock exchanges after markets closed in Mumbai.
Murthy returned as executive chairman on June 1, 11 years after he was last CEO of Infosys. The move is intended to boost flagging morale at the company and to enhance Murthy’s stock of goodwill. It is also sending a message that the Infosys co-founder is back and means business.
The company has had two years of disappointing results and starting to lose market share to rivals such as Tata Consultancy Services and Cognizant Technology Solutions.
The pay increase will be effective July 1 for most staff, while the company’s global sales force will see increases effective May 1, the company said.