If the proposal is passed as a Bill at the House of Representatives, the reforms could shift the way American companies like Microsoft Corp., Amazon.com Inc. and Apple Inc. recruit talent. The draft bill aims to make it difficult to replace US employees with foreign workers. This will result in a body blow to companies such as TCS, Infosys and Wipro in its present shape and they will have to go in for wholesale changes. Check for H1B Visa Evaluation in UT Evaluators
Experts feel that the minimum wage limit will not rise beyond $100,000 as the US firms themselves will lobby to curb it at that level. Also the bill hopefully will take time to be passed, and firms such as TCS and Infosys will have ample time to devise a strategy which will see them withstand this bill without much affect on their profitability and revenue.While the news of the proposed bill saw the Stocks of Indian software exporters plunging, TCS declined to comment on the development, whereas Infosys and Wipro didn’t immediately respond to a request for comment.However, there is also a school of thought that this new ruling if passed by the US maybe a blessing in disguise for India.
In an interview with News18, Ashok Soota, former president of Wipro and Executive Chairman of Happiest Minds Technologies, said, “The effect will be two-fold: We will bring more of the work offshore, which is a long-term advantage for the Indian IT industry. Besides, it will drive Indian companies up in the value chain, because the kind of people who we send will be premium people, people who are consultants and highly experienced and skilled.” Credits: News18
“If skills aren’t available in the US and per law you can’t bring workers in then either the job will remain undone or the job will be shifted to India or some other location outside the US,” R. Chandrasekhar, president of software industry lobby group Nasscom, said in a phone interview with Livemint. “It will also be a big loss to the US since outsourcing jobs creates jobs directly and indirectly for the US economy.” Credits: Livemint. H1B Visa Process check here
IT companies are India Inc’s biggest foreign exchange earners, and services exports, especially information technology, have helped in the acceleration of India’s economic growth. By tightening the H1B visa rules, the Trump administration is hitting at the core of India’s growth story. It is time to wait and watch. There is no doubt that the US needs the skill and talent that India outsources. In fact the potential effect of the H1B clampdown on business could probably lead to US firms weighing in on their government to not go ahead with the proposal.
Last but not the least, whenever there has been a change in US policies, Indian businesses have adapted and have converted the changes to their own advantage. Hopefully this time around also India will come out a winner with no affect on its economic growth.