Shares of two major Indian IT firms dropped on Wednesday after the US Senators had set in law to slash down the number of H-1B visas
which are granted to the skilled employees like IT professionals.
The law proposes that such grants be offered initially to the overseas employees who earn the maximum wages. The report also revealed concerns that the US might limit the movement of IT professionals to that nation that will definitely hurt the profits and would inflate the costs of Indian IT companies.
According to the analysis of information from the government, it said that the US issues 86% of H-1B visas to the people from India. Many of the H-1B visa holders work for the outsourcing companies like TCS Ltd and Infosys Ltd.
Except TCS, the shares of many other IT firms had reacted negatively. Every year, the US grants around 65,000 visa for the individuals who possess specialized skills with extra 20,000 to the individuals who holds advance degrees.
The bill which was filed by the two US Senators who want to slash down the skilled employees visa numbers by 15,000 which are made available every year. It also needs the Homeland Security Department for ranking the distribution of the remaining 70,000 H-1B visas to overseas employees based on their income.
The quota of the visa numbers which is granted in the year fills up in few days of its opening for grabbing the applications for the visa. And the outsourcing companies that earn a bulk of income from the US has been demanding an hike in this limit.
According to the Senator, Nelson, the bill would assist in ensuring that this H-1B visa program could be used for what it was originally prepared, for luring overseas employees with high skills.
According to Nasscom, India and the US had built a planned partnership all over the sectors and also see that the free movement of international talent is important factor for success of this partnership.
If the legislation becomes a regulation, then it can spell the trouble for the Indian IT industry, which is already on the track to get $225 billion income by the year 2020 and around $350 billion by the year 2025.