The back-office services unit of Indian outsourcing provider Infosys was overcharging Apple, leading to the exit of top executives, two senior Infosys employees have revealed.
Infosys, India's second-largest IT services exporter, today revealed it had fired Abraham Mathews, chief financial officer of its BPO unit, for failure to comply with the company's code of conduct.
Infosys BPO chief executive officer Gautam Thakkar resigned on "moral grounds" and will leave the company on November 30, Infosys said. It did not give details about the charges against Mathews.
Infosys spokeswoman Sarah Gideon said the company would not comment further on the confidential investigations.
"The financial irregularities are not material in nature and the company has already made required disclosures. The company has taken disciplinary action on employees," she said.
Apple has been contacted for comment.
The irregularities in Infosys BPO's dealings with Apple came out during an internal audit, one senior source at Infosys revealed. He declined to be named as he was not authorised to speak to the media.
Though the audit showed that the financial impact of the wrongdoing on the company was minimal, Infosys decided to take a tough stance to demonstrate its "zero-tolerance policy for any improper conduct," he said.
Infosys will reportedly soon fire at least six more employees at the unit, after investigations revealed that they had produced inflated invoices and allegedly overbilled Apple for many months, according to the Economic Times.
Infosys earlier this year brought in Vishal Sikka as its new CEO to chart a new strategy for the company, once a trend-setter for India's more than US$100 billion IT outsourcing industry. Infosys has struggled in recent years to retain staff and market share.