Indian IT companies might increase fees to counter hiked US visa fees

January 12, 2016
India’s IT outsourcing firms are likely to increase the client fees and process additional work from their centres for cushioning the affect of hike in fees for work visas in the US. –According to the top market investors.

Indian IT companies might increase fees to counter hiked US visa fees

According to them, the latest US measure would cut 50-60 points from the profit margins of data technology companies that include TCS and Infosys from next financial year starting from 1st April.

The $150 billion outsourcing sectors produce about three-quarters of its income from the US, where the outsourcing firms send thousands of staff each year to job at the client locations.

The measure that was passed the previous month by US Congress had increased the sponsoring cost for workers under the short-term H-1B and L-1 visas and prompted concerns of the future controls on the IT employees sent abroad by the US firms before the presidential elections in the US.

The lobby group of the IT industry, the Nasscom had predicted that the local IT companies will incur an additional $400 million every year in costs because of the rise in visa fees.

According to the analysts, the IT companies had increased their focus on the services of high margin digital technology instead of technology infrastructure maintenance and projects related to software applications, they will require sending less staff to the client locations abroad.

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