The Indian techies and IT firms situated in the United States are going to have a rough ride as the Donald Trump headed government is on the approach of altering current H-1B visa rules.
Ratings agency Icra said that the new plan is probable to dent revenues of Indian IT firms functioning in the US as it may possibly lead to a decrease in the number of H-1B visa sanctions for steady applicants.
In a year, there are limit of issuance of 65,000 on consistent H-1B visa and also those who have an advanced degree from an US association have further added 20,000.
Still, the new rule is under assessment and will support advanced degree holders, which will leads to a decrease in consistent H-1B visas sanctions for Indians. In return, this will take a hit on the effectiveness of H-1B reliant Indian businesses functioning in the US.
In the previous year of December 2018, the US migration facilities or USCIS planned withdrawing of the current rules for H-1B visa selection to support advanced degree holders, the submissions under this group are covered at just 20,000 in contrast to the 60,000 bounds under the consistent share.
Now, further down to the new procedure, the US migration facilities branch would choose the first 65,000 visas from the collective group of consistent and advanced degree holder applicants.
The left behind 20,000 visas for highly accomplished H-1B visas would also be allocated between the left behind group of not selected advanced degree holders. This is an effort to lower down the number of less capable or abstemiously skilled foreign workforces in the nation.
The vice president of ICRA Limited, Gaurav Jain conveyed disappointment over the projected strategy alteration as it will work in contradiction of the Indian IT services sector that is for H-1B dependent companies as their stake of master’s gradation or corresponding for H-1B visas sanctioned was about 27 per cent related to 55 per cent for non-H-1B dependent companies.
A unit or enterprise is characterized as H-1B dependent if more than 15 per cent of its workforces are on an H-1B visa.
As per the ratings agency Icra, if the new rule is applied, then it will lead to a 10 per cent fall in H-1B visa sanctions for consistent applicants or any aspirant deprived of a degree from US institution of higher education.
However, Indian techies who are applying for an H-1B visa will have lesser probabilities of acquiring the sanction also there will be a hit on profitability of IT companies.
In the meantime, Indian IT companies in the US by this time have ramped up aground signing as visa issuance standards are possible to be constricted further. The limits on consistent H-1B visas will stop them from employing entry level operated programmers who practice a majority of the personnel staff. If this new rule came up with approval and started practicing its rules then it might not be shocking to realise Indian companies support lower offshore revenues.
