One of India's largest IT companies has been accused of misusing 457 visas to bring foreign workers into Australia.

Tata Consultancy Services (TCS) has IT contracts with some of the nation's largest companies, including Qantas, Woolworths, Telstra and AGL.

Current and former employees of TCS say the company relies on foreign workers, even in areas where there are no skills shortages.

Key points: Indian IT giant Tata Consultancy Services (TCS) accused of misusing 457 visas.

Indian IT giant Tata Consultancy Services (TCS) accused of misusing 457 visas. TCS employs 300,000 worldwide and makes billions, with clients including Qantas, Woolworths, Telstra and AGL.

TCS employs 300,000 worldwide and makes billions, with clients including Qantas, Woolworths, Telstra and AGL. Company accused of flying in workers without advertising for Australian workers.

Company accused of flying in workers without advertising for Australian workers. Immigration Minister Brendan O'Connor wants regulation to force companies to advertise locally.

Immigration Minister Brendan O'Connor wants regulation to force companies to advertise locally. Union says companies get around regulation by advertising low wages that local workers won't take.

One worker, who wants to remain anonymous, says TCS overuses 457 visas.

"I believe it did - I was never asked to advertise for any Australians when developers were required," she said.

"We just contacted the local area manager and he would send a developer on the next plane from Mumbai."

TCS employs almost 300,000 people worldwide and makes billions of dollars each year.

The revelations come as the Federal Government moves to toughen laws against the use of foreign workers.

Immigration Minister Brendan O'Connor wants to force companies to advertise locally before employing foreign workers.

But he has struggled to win the support for the move from Parliament's cross-bench MPs.

However, a Senate committee is now considering the legislation and will report back within days, with the Government hopeful of a vote next week.

"I don't think I can be any clearer as Minister that we don't want the scheme to be used in a way that undermines employment conditions or seeks to unfairly displace local workers," Mr O'Connor said.

In the campaign for tougher laws, Prime Minister Julia Gillard singled out the IT industry for special attention.

"One in twenty temporary overseas workers in Australia is doing IT work in New South Wales alone", Ms Gillard told an ACTU conference earlier this year.

Another former employee of TCS, Hasan Mahboob, agrees that the industry is guilty of using too many 457 visas to fill jobs in which there is no skills shortage in Australia.

"There is a large number of 457 visa applicants or [wider] use of 457 visas... which I don't personally believe is warranted under 457 visa conditions," Mr Mahboob said.

"Project managers, program managers, account managers or relationship managers - I do not see those roles should be imported under 457 visa conditions."

Most of TCS staff at Qantas on 457 visas, says former employee

TCS holds a multi-million-dollar IT contract with Qantas.

7:30 understands that most of the TCS staff working at Qantas are in Australia on 457 visas.

Mr Mahboob says the whole industry over-uses 457 visas. And he agrees that TCS relies on the foreign worker scheme.

"I'd certainly seen heavy use of 457 visa, starting from the very top - management level people, relationship managers, account managers, service delivery managers, project managers, program managers, business analysts, all of which I question should be done by 457 visa," Mr Mahboob said.

Australian unions have been encouraging the Government to crack down on foreign worker visas.

Peter Tighe, the national secretary of the Communications, Electrical and Plumbing Union (CEPU), says the IT sector needs attention.

"We know there are people in the industry looking for employment. You wonder why there's a growth in 457 visa holders coming into the country to work in that area when you've got people who are unemployed. It just doesn't add up," Mr Tighe said.

But there are doubts that the Government's solution will work.

Companies have ways to avoid regulation

Mr O'Connor wants to enforce labour market testing, meaning local companies must advertise in Australia before looking overseas for workers.

But there is evidence of companies in the US and other countries actively trying to evade rules on advertising locally.

Mr Tighe is worried that the new rules might not work.

"If the market rate for someone is 70 to 80,000 a year, then if you advertise at 20,000 below that rate, then you're not going to get any applications," he said.

"It's really important that labour-market testing really reflects the market."

Mr Mahboob says the move to tighten up the use of 457 visas is overdue.

He now works for another IT company, but says he always tries to hire Australian workers first.

"Authorities here need to put a bit more scrutiny to see whether Australian local recruits, my kids, my grandkids are also looked after. I just want to make sure we look after our next generation as well", Mr Mahboob said.

TCS refused to comment.