Trump’s new policies are making people afraid. Some Americans still believe that the win of Donald Trump as American President is just a nightmare. But, they anyway have to deal with the reality and this time Indian software outsourcing companies are worried about the H1 B Visa policy.
Since many Indian are living in America and most of them dream of finding a job there; this new H1 B Visa policy will affect the Indian IT firms which rely on these work visas.
Before going further, we would like to explain H1 B Visa to our readers.
H1 B Visa is a program for companies hiring international workers for certain positions in the U.S. But this program is more complicated as it seems to be.
As per the Immigration Attorney Paul Goldstein, “H1 B Visa are non-immigrant visas for international workers in ‘specialty occupations.’ As there is no set definition for such occupations, according to the policy, the position must meet one of the following criteria-
- The position must desire a baccalaureate or higher degree or its equivalent.
- Or the position must have a degree requirement which is commonly desired by the industry for similar positions, or be a specialized position that only deserve and handle by a person with a degree.
- Or it has to be a position which the employer usually requires a degree or equivalent
- Or the responsibilities of the job or its nature are so complex that the skill set and knowledge required to perform those responsibilities would usually be associated with a baccalaureate or higher degree.
Which employees come under H1 B Visas policy?
Significantly, any company that employs people for positions that need a college degree could apply for H1 B visas.
But there are special businesses that could use them more than any other company. Giants like IBM tend to apply for a great share of the allotted visas.
Moreover, some physicians and non-profit and government researchers can also come under this program.
H1 B visas are used by the largest corporations of the U.S. by hiring and outsourcing employees from countries like India, Pakistan, and China.
As there is loss of manufacturing jobs in China, people in America were told to prepare for the new job market with higher degrees in IT and computers. The H1 B program now forces them to train those who will do their jobs by being subsidized by them to work for less.
The good thing about H1-B’s is that those employees spend their money in the country, where they earn it. Without H1 B, schools and tax revenues will get hurt with the loss of such high paid employees. But if anyone thinks that he can easily get on job competition by tinkering with H1-B’s is not possible. IT companies compete in a global marketplace and nothing Trump does can change it.
IT sector of India is booming and it is intensely dependent on the US for its clientele. So, any change in US policy will impact the Indian IT sector. A few reasons for this phenomenon are as under-
- Major numbers of projects outsourced by Indian IT companies belong to the US.
- The consultants from Indian IT companies in US are required for effective implementation of the IT projects.
- The change in policy can affect the delivery cost and cut down the profits of the firm.
- If the cost of sending the consultant from India is increased or limitations are applied on the number of visas that can be issued, the IT businesses will come under pressure and hire US candidates who demand higher salary. This will directly affect the employment in India.
What measures should be taken by Indian IT software outsourcing companies in this regard?
Companies in India should expand the clientage to other major economies like Japan, Europe, South America, and China. Businesses should link the cost of project delivery to the US VISA policies. Companies should make their processes location independent so that when they need to send consultants to the client location, it can be minimized.
Indian companies need to develop more competent products. Development of products that require less or zero physical presence in overseas countries will be helpful. Indian companies should try for long term agreements with exporting country to offer stable market in future.
US companies largely outsource and welcome Indian workforce and this brings certain issues-
- Hike in Visa fee hurts Indian labor and is against the idea of free flow of labor. India is the largest user of H1 B visa in the US along with the L1 visa.
- Currency exchange rates affect the decision of offshoring.
- Software patents regime of India is not in accordance with US standards.
Do you think H1 B Visa can adversely affect the Indian IT sector? Share your thoughts with other readers in this regard.
Software outsourcing company think that they have to be little worried and cautious.
However, they believe that this change will remain unfavourable for the US because most of the projects from there are outsourced to low price countries like India.