Infosys Technologies office campus in Bangalore. Photo: AFP
The Infosys Technologies campus in Bangalore. Photo: AFP

With the US government moving closer to changing the process of issuing H1B visas, Indian information technology companies are worried about adverse impact. The new norms are expected to come into force next year.

Last week the Office of Management and Budget of the United States said it had completed a review of a proposed regulation from the Department of Homeland Security that would mandate employers to register without paying the H-1B visa fees of those employees whom they intend to sponsor for H-1B visa permits. A lottery system would shortlist people for the work permits, following which the applications would be accepted, Economic Times reported.

Indian companies, however, fear that the process of issuing visas would be non-transparent and would favor US technology companies over them.

Under the H1B visa program, skilled foreign workers are allowed to work in the US for a limited period. Indian software majors such as Infosys and Tata Consultancy Services use such permits to bring in their professionals to service clients in the US.

Of the 85,000 H1B work visas granted each year, an overwhelming number of recipients are Indians. But ever since Donald Trump came to power the administration has been trying to tighten norms for such visas.

In the past four years, the number of visa application rejections for Indian companies has been on the rise. According to National Foundation for American Policy, a US-based research foundation, the visa denial rate for Tata Consultancy Services went up from 6% in the 2015 fiscal year to 37% during the first quarter of FY19 (October-December 2018). In the same period for Infosys, it has gone up to 57% from 2%, while for HCL it has increased to 43% from 2% and for Wipro it has shot up to 62% from 7%.

Indian companies feel through the lottery system they may lose out to US-based consulting companies like Accenture or IBM.

Also Read: US may limit H1B visas to fight data curbs

Leave a comment