Indian IT Companies Won’t Be Affected By Likely H-1B, L-1 visa Checks

As per a news report from a leading Indian daily, in case a new Bill–duly proposed by two American lawmakers– eventually becomes law, the nation’s 100-billion dollar IT services export business won’t be affected in any big way. Allegedly, the Bill in question seeks to further restrict H-1B and L-1 Visas.

Significantly, there has been a great deal of differences by New Delhi and Washington DC involving the H-1B and L-1 Visas in recent months, ever since the American Congress passed large Government charge increases into law on December 19, last year. On March 4, 2016 New Delhi filed a complaint with the concerned organization, namely, the World Trade Organization (WTO), disputing the fee augmentations of 4,000 and 4,500 dollars in that order.

On May 13, the involved countries reportedly held ‘secret’ discussions at the WTO headquarters in Geneva, Switzerland in an effort to decide the matter. But, post discussions, it seemed that the possibilities of a friendly way out appeared desolate.

H-1B, L-1 Visa Reform Act Doubtful to Receive Green Signal

According to the report published in the daily, the chances of the Bill–called the H-1B and L-1 Visa Reform Act of 2016–being passed into law in its present form is highly doubtful. Actually, since most of the time it appears to be not possible for both House of Congress to have the same opinion on major immigration reorganization, the bill will, most possibly, never be made a law.

The Bill seeks to prohibit firms from appointing new H-1B workers in case they have 50 or more workers offering their services for them with 50% of them on either the H-1B or the L-1 Visas.

Lately, certain leading Indian IT groups–like Wipro, Infosys, and Tata Consultancy which have operations in the US–have sought to utilize additional US citizens and permanent residents, to cut down their reliance on the non-immigrant visas.

Traditionally, Indian IT groups have relied rather heavily on the H-1B and the L-1 Visas for the running of their businesses in the US even as the US accounts for as high as 60% of the Indian IT business’ income.

Some American employees have reportedly alleged that the Indian IT firms usher-in in low-cost Indian manpower at the cost of the local labor force. Numerous would argue that in point of fact the majority of the Indian employees in the US are paid too well.

Scarcity of Trained IT Workers

Sharing his views on the issue, a concerned person from the Nasscom, the well-known Indian IT industry body, reportedly stated that these days it is not an issue of low-cost any more. It is about if germane skills are obtainable or not. Till the period the skill sets are not obtainable, this standardized strategy has to be adopted.

As per the calculations made by the US Labor Department, as many as 2.4 million vacancies across science, technology, engineering and mathematics (STEM) will continue to be vacant by 2018—half or 50% of which will be IT & computer associated.

In a report brought out by Nasscom, they portray how the Indian-based IT companies, offering services to US businesses and other firms, have made an investment of 2 billion dollars in the US from 2011 to 2013, even while they gave 22.5 billion dollars in taxes to the treasury through the identical time-frame.

Nasscom reportedly proclaimed that the Indian IT firms are accountable for proffering 411,000 direct & indirect jobs throughout the US–300,000 of which are filled by those with citizenship and permanent residence status of the US.

Numerous Immigration Bills Put Forward, None Passed

Republican Presidential nominee, Donald Trump, together with fellow Republican Ted Cruz, have each reportedly urged for checks to be imposed on the H-1B Visa Scheme in particular. But, as per a concerned person, the latest Bill is hardly a matter of worry.

He reportedly claimed that though along with Trump & Cruz, countless have urged for curbs, and a lot of Bills have been suggested before, none have ever been passed. Since the US is plagued with skill famine, it has no options except to support immigration.

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