Infosys' legal problems prompt analysts' concerns

09.05.2012

Despite the prevailing wage requirement set by the U.S. for visa holders, Rutchik said "there's no question that they are paid less."

Rutchik estimates that the cost for people on visas is about 20% less than other workers.

He makes some of the same recommendations that Forrester's Moore does, but believes they should be applied to all companies. Customers need to see the resumes of the offshore workers, and even their visa applications. They also need warranties and audit rights in contracts.

Moore has called Infosys' response to the legal threats "lackluster," and said the company's recent "anemic" "has clients wondering what the future holds for Infosys."

The offshore industry is seeing signs of a slowdown. Cognizant, for instance, reported in its first quarter results this week that despite a nearly 25% increase in revenue, it is seeing a "slower than anticipated acceleration in demand."