The latest H-1B visa move to hit the Indian IT firms

December 12, 2015
The latest bill targets at crackdown on the Indian outsourcing companies is being supported by two US Senators and the possibility of its approval is much more.

According to a report, the two US Senators had filed the law that will slash down the number of skilled work permits which is also called as H-1B visas. The Homeland Security Department has reduced the granting of visas from 85,000 to 70,000 making it reduction of 17%.  

The latest H-1B visa move to hit the Indian IT firms

According to US Senator Bill Nelson,  this week the bill  both the Senators are proposing stipulates that the US government provides the visas based on the income, rather than by the lottery way.

Bill Nelson also said in his statement that this is being designed to target the outsourcing companies that depend on the low wage overseas employees to replace equally qualified US employees.

In the month of November, two Senators had introduced the bill that stated that among the rules, it is compulsory for all the firms who want to employee workers using H-1B visa should initially try to employ the citizens from US.

Indian outsourcing companies like Infosys Ltd and TCS Ltd sends many of their IT employees to the US on the H-1B visas.  And according to Dinesh Goel, Partner, ISG India, the two bills reflects the trend towards protecting the jobs in the US as it has become the political issue for the upcoming elections in the US.  

According to Goel, it is not clear that whether the bills could become the law, the moves threatens for making doing the business much more difficult for the outsourcing companies and it also affect their ability to send the talent from India to the US. 

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