US Visa Rule Changes Affect Indian IT Industry

It’s alleged that even if the $108 billion strong IT industry of India could be rather active lobbying hard in the US—to dilute some of the steps advocated in the much-talked about Immigration Bill–the recent amendments introduced by Australia & Canada to their immigration rule does not bode too well for the said industry.

A report in this connection claims that the modifications proclaimed will swell the lead time for employing resources, and boost the cost of servicing customers outside. Despite the fact that both the nations are not remarkable revenue givers to the industry, they have been gaining much importance, of late.

The report adds that Canberra sanctioned changes to its temporary work permit (457 visa scheme) even as the same not only prevents the outplacement of the resources to clients, but also swells lead time for recruiting workers, via extended advertising time. The same could harm some firms, such as Tech Mahindra & Infosys; with the reason being 8 to 9% of their income arrives from Down Under.

Talking about this, an involved person reportedly said that presently the 457 permit cannot be duly harnessed by the IT firms to import the workers. It makes the same akin to the L-permits proffered by the US, adding it could negatively influence the T&M deals.

Likewise, Ottawa changed its scheme meant for the temporary foreign workers, which removes income flexibility for the overseas manpower (earlier permitted to cough-up 15% lesser than the existing salaries), and suspended fast-track permit processing (at the present, it will require anywhere between 3 and 5 months from the previous 10 days).

In the context of the Maple Country–wherein the amendments become effective right away–the administration may delay & cancel work visas, besides the labor market opinions (LMOs) in a situation where in the scheme is being abused.

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