The US government has opened an investigation against Indian outsourcing companies for possible violations of H1-B visa rules, according to a media report. The Department of Labour has opened the investigation against Tata Consultancy Services and Infosys for "possible violations of rules for visas for foreign technology workers under contracts they held with an electric utility Southern California Edison.

The power company had recently laid-off more than 500 technology workers amid claims that many of those laid off were made to train their replacements who were immigrants on the temporary work visas brought in by the Indian firms.
 
Commenting on the US opens probe against TCS, Infosys for H1-B visa violations, Sarabjit Kour Nangra, VP research, IT, Angel Broking, said, ''This development is in the normal course of business and hence, we believe that it won't have major impact on the business dynamics. Currently, it does not involve any financial implications for the company. Thus we maintain a BUY on both the stocks Infosys and TCS with a price target of Rs 2,630 and Rs 3,168 respectively.''

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