Infosys, ever since its public listing, has had to face numerous risk factors while reporting its financials. From now on, it has to add one more facet to this - the UK's revised TUPE or Transfer of Undertaking (Protection of Employees) Regulations.
Infosys, in its filing to the Securities and Exchange Commission (SEC), has said: "In the United Kingdom, the Transfer of Undertakings (Protection of Employees) Regulations, or TUPE, including the recent revisions, will allow employees who are dismissed as a result of 'service provision changes,' which may include outsourcing to non-UK companies, to seek compensation either from the company from which they were dismissed or from the company to which the work was transferred.
This could deter UK companies from outsourcing work to us and could also result in our being held liable for redundancy payments to such workers."
Infosys has also said recently some countries and organisations had expressed concerns about a perceived association between offshore outsourcing and the loss of jobs.
"In the US, in particular, there has been increasing political and media attention following the growth of offshore outsourcing. Any changes to existing laws or the enactment of new legislation restricting offshore outsourcing may adversely impact our ability to do business in the US, which is the largest market for our services," the company said.
In the last three years, some US states have proposed legislation restricting government agencies from outsourcing their back-office processes and IT solutions work to companies outside the country or have enacted laws that limit or discourage such outsourcing.
"Such laws restrict our ability to do business with the US government-related entities. It is also possible that US private sector companies working with these governmental entities may be restricted from outsourcing projects related to government contracts or may face disincentives if they outsource certain operations," the company has stated.
Infosys has said any of these events could adversely affect its revenues and operating profitability.
