Big setback for Infosys; tech major says visa rejections on rise

IT major Infosys has flagged off concerns around the increased rejection of work visa applications, and said this could result in delays and increase in project costs for its clients. The Bengaluru-based company has already been ramping local hiring in key markets like the US to tackle increasing scrutiny around work visas by various governments.

“Recently, there has been an increase in the number of visa application rejections. This has affected and may continue to affect, our ability to obtain timely visas and staff projects. As a result, we may encounter delays or additional costs in managing such projects,” Infosys said in a recent regulatory filing.

Infosys also noted that the company may have to apply in advance for visas or could incur additional cost in maintaining such visas that could result in additional expenses.

The company also warned that its international expansion strategy and business could be materially adversely affected if a change in immigration and work permit laws impairs its ability to staff projects with local workers.

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Previously, Infosys had stated that stricter work visa norms will not “constrain” its business growth.