Infosys, India's second-ranked IT firm, said on Tuesday that US authorities have cleared it of visa violation charges after a nearly three-month long probe.

But experts pointed out that despite Infosys getting a clean chit from the US government, other Indian IT exporters will continue to be under the scanner.

Infosys and TCS came under the scrutiny of the US government, which had initiated a probe into their labour practices following a complaint by two US Senators. The Senators had alleged that the two companies used a US visa programme to “replace hundreds of American workers” at the Southern California Edison project.

Infosys, in a statement, said that it had cooperated fully with the Department of Labor, and that the US government had given it a clean chit.

In a statement, Sandeep Dadlani, the company’s Executive Vice-President and Head of Americas, said: “Infosys continues to actively recruit and hire talent in the US, but while there is a shortage of technology skills, Infosys is a responsible participant in the H-1B programme.” TCS continues to be under investigation but in a statement said that audits by the Labor Department have taken place from time to time and that the company has always been found to be compliant.

The company abides by all regulatory requirements and visa laws, the statement added.

Stringent rules expected Indian IT companies are wary about the possibility of more stringent regulations being imposed on them, especially in deals that involve absorbing employees in the US.

“Regulations outlawing worker displacement en masse could be in the offing,” said Rajkamal Rao, Managing Director, Rao Advisors, an immigration expert.

A Vice-President at a top 5 software exporter said that the US could tighten norms for granting of H-1B visas. However, he said no communication has come from regulators. Already, according to reports, 40 per cent of the 65,000 visa applications annually get rejected for not meeting requirements.

While that may seem like a large number, the actual number of foreign workers coming in through the programme could be thrice as many because of numerous exemptions, according to industry watchers.

Some of the candidates seeking to make a presidential run have also called for an increase in the number of visas.

Dinesh Goel, partner at ISG, said that it is likely that such investigations may be carried out by the government to ensure compliance given the perception of job losses foreign work permits create. However, it is worth noting that the business model as well as sensitivity to local employment has driven Indian IT service providers to create hundreds of local jobs

Under scrutiny Software exporters have been under the scanner in the US for unfair recruitment practices and even for not paying some workers the right wages.

In May, a US Court refused to dismiss a case filed by four American IT workers against Infosys for allegedly showing favouritism while hiring.

Steven Heldt, a US IT worker, had filed a court case in San Francisco accusing TCS of overwhelming favouritism towards workers of South Asian descent.

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