Increase in Visa Rejections May Cause Project Delays, Hike in Costs: Infosys

The recent increase in visa rejections may cause a rise in costs of projects and delays in their execution, Indian technology major Infosys has said. The issue has also affected the firm’s ability to recruit new staff for projects, the Bengaluru-based multinational company said in a recent regulatory filing.

“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 the filing, PTI reported.

Infosys has enhanced its drive to recruit local talent in countries such as the United States, after immigrations rules were tightened by the Trump administration. It had said recently that the company is focussing on hiring and training local workforce in markets such as the United States and Australia, which are undergoing changes in visa rules, the report added.

“…. what we are building with this localisation approach is really gearing towards making sure that our business model evolves in the right way, without sacrificing the best elements of the business model for the future. So, I don’t think we see that this is going to constrain our business growth,” CEO Salil Parekh had said.

The company will train and hire 3,000 American workers at its United States Education Center in Indianapolis by 2023, Infosys said in April this year. A month before that, it had announced the launch of a new office at Hartford, Connecticut, for which 1,000 American employees would be hired by 2022.

The company also announced earlier this year that it has hired more than 2,500 American workers over the past year as part of its ongoing commitment to accelerate innovation for American enterprises.

Besides ramping up local hiring in the United States and Australia, Infosys is also increasing its footprint in Europe.

The firm has set up a new Digital Studio in Berlin, it announced on July 19.

“Powered by Brilliant Basics, the Digital Studio in Berlin will provide clients comprehensive and continued digital transformation solutions. The studio will combine Brilliant Basics’ product design and customer experience capabilities with Infosys’ worldwide connected network of Digital Studios, technology capabilities, talent and cross-industry experience,” Infosys said.

Infosys has set up new #DigitalStudio in Berlin to expand its digital capabilities. Powered by @BrilliantBasics, the studio will provide comprehensive & continued #DigitalTransformation solutions to clients #BrilliantBerlin https://t.co/NBbYJ58mK7 #NavigateYourNext #BeBrilliant pic.twitter.com/g0ktbYuUKC

— Infosys (@Infosys) July 19, 2018

The Digital Studio in Berlin is strategically positioned to support clients in Germany, Austria and Switzerland, specifically focusing on industries such as telecom and communications, oil and gas, technology, fintech, automotive, engineering and manufacturing.

The company did not provide investment details for the studio.

Last month, Infosys established a new Digital Center of Excellence in Marseille, France, to deliver the firm’s digital offerings to companies in the country. The facility would initially employ 60 workers, and focus on providing its clients services in the areas of Design and User Experience, Artificial Intelligence and Big Data and Analytics, the firm had said at the time.