1. US H1b visa laws: Thousands of Hyderabad techies may have to return due to Donald Trump’s proposed diktat

US H1b visa laws: Thousands of Hyderabad techies may have to return due to Donald Trump’s proposed diktat

Now IT companies in Hyderabad are fearing worst as thousands of techies who are working in the US on H-1B visas will have to return.

By: | New Delhi | Published: February 6, 2017 8:32 AM
Now IT companies in Hyderabad are fearing worst as thousands of techies who are working in the US on H-1B visas will have to return. (Reuters) Now IT companies in Hyderabad are fearing worst as thousands of techies who are working in the US on H-1B visas will have to return. (Reuters)

With US President Donald Trump set to sign a new executive order aimed at overhauling work visa programmes like the H-1B and L1, concern looms large over the fact that the move that will adversely hit the lifeline of Indian tech firms. A legislation has been introduced in the US House of Representatives which among other things calls for more than doubling the minimum salary of H1-B visa holders to USD 1,30,000, making it difficult for firms to use the programme to replace American employees with foreign workers, including from India. Now IT companies in Hyderabad are fearing worst as thousands of techies who are working in the US on H-1B visas will have to return, The Indian Express report said. Around 4 lakh software engineers work in 1,283 software firms in Hyderabad, and approximately 20,000 of them go to the US every year on H-1B visas. Every year 60,000 H-1B visas are issued of which approximately 54,000 visas are to techies. Unfortunately, thousand of them will be forced to return. As per the Industry captains, out of every 100 techies currently posted in the US, 95 will have to return if the new rule is imposed.

“Companies have already started listing who they will keep in US and who they will ask to return home. I think only critical resources persons and people at the level of vice-president or director would be asked to stay on-site while the rest of the staff who are mostly associate and senior associate level would have to return home. No company is going to pay $1,30,000 and keep more then one or two most needed employees in the US,” Sandeep Kumar Makhtala, president of Telangana Information Technology Association (TITA), said.

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“Hike in H1B visa cost will have significant impact on the financials…as Indian companies are major users of H-1B visa though they form very less part of the overall workforce (around 11-15 per cent),” brokerage firm Angel Broking had said. “Depending on the companies, they could easily witness around 60-70 per cent rise in the salaries of the H1B visa dependent workforce and hence have significant impact on the net profit of the companies,” it added.

While about 55 per cent revenue for Indian IT companies comes from the US, companies are already exploring South Africa, Australia, Canada, UK and some European countries for projects.

H1-B is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise in specialised fields. The technology companies go for it to hire tens of thousands of employees each year.

  1. S
    Startup mentor
    Feb 6, 2017 at 7:20 pm
    Almost all direct employers paying 100K to 120K for IT resources, it's the middle party recruiting that eats their pie for each such level and gets into hiring low wage resources (which obviously can find in H1 resources) ... Which drops till the range of 50K to 70K. If direct employers can hike their budget for the hiring as per labour laws then only the deserved candidates will find a job, then all these middle parties will get cleaned. Every country needs to have balanced growth across all the sectors, but the job perception here being thrown only on IT sector with H1 replacing the American talent. There are so many other types of visas which were being exploited due to loop s in the system. Overall if US needs strong growth in its economy and job market it has to look into all the sectors including manufacturing of original components and not just "Designed in USA made in PRC/China/xyz"
    Reply
    1. V
      Vedansh
      Feb 6, 2017 at 5:15 pm
      Great News and different this time. Service company lobbying, Collude and nexus will not work this time. H1B is NOT profit making machine at expense of cheap labor. Gosh - Look at the packages TOP TOP management take home.
      Reply
      1. A
        AshleyS
        Feb 6, 2017 at 2:33 pm
        I think you should do fact check before writing such articles, the overhauling of work visa program bill has been submitted to the house by Democrat senator from silicon valley Zoe Lofgren, Donald Trump has NOT issued any executive order on this.
        Reply
        1. A
          Atul Deshpande
          Feb 6, 2017 at 4:35 am
          This bill hasn't ped...stop freaking out..dian Express should do more responsible reporting instead of just recirculating rumors. You as responsible journalists should realize that BSE has already lost 33,000 crores because of these rumors.
          Reply
          1. B
            Ben
            Feb 6, 2017 at 5:38 pm
            Who is that god of your's? Ganesh? Think what is going to happen if it really happens. Thousands unemployment in India.
            Reply
            1. B
              Bob
              Feb 6, 2017 at 4:53 pm
              I am sure he is aware of it and I am also sure he will sign it. This is one of the primary issues he won the election on. It is great news!
              Reply
              1. G
                gita
                Feb 7, 2017 at 5:49 am
                Serves them right .They all look down on India and Indians here when they go to the US.
                Reply
                1. H
                  Hardik
                  Feb 6, 2017 at 2:06 pm
                  It's a very good move from Donald Trump for Americans..!! :)
                  Reply
                  1. G
                    Goroa
                    Feb 12, 2017 at 9:24 pm
                    Seems American corporations have already started cancelling their IT contracts to H1B services companies to avoid future losses and hles.
                    Reply
                    1. K
                      K.V.Mahadevan
                      Feb 6, 2017 at 11:14 am
                      Chilkur Balaji will be in serious dilemmas. To give more visas or to bring back those already given? To protect those who are there or stop sending more? Another doubt --will the Lord lose his sheen as a US visa giver ? Only Trump will tell.
                      Reply
                      1. R
                        raj
                        Feb 8, 2017 at 8:58 am
                        bad news but hope we need to see other countries are trading forex in dollars make more than 3000 dollars seating in india
                        Reply
                        1. R
                          Ramanathan
                          Feb 7, 2017 at 1:07 am
                          There is spl temple called " Visa Venkateswsra" in hyderabad. He helps people get visas. People fly from Bangalore n many other places to visit this temples.
                          Reply
                          1. Suvajit Sengupta
                            Feb 6, 2017 at 5:59 pm
                            The scam exploiting both law and human resources will be busted. #happy #h1bscam
                            Reply
                            1. S
                              syedazmathali
                              Feb 6, 2017 at 1:47 pm
                              Very bad news
                              Reply
                              1. K
                                Karthikeya
                                Feb 12, 2017 at 2:13 pm
                                Yea right. These so called IT firms who employ people on H1b shouldn't be allowed to use H1b. They are taking away work visa from students who come to study here and leaves them scared and worried for their future. These outsourcing firms are exploiting Indian workers and flawed visa system.
                                Reply
                                1. Uday Kolatkar
                                  Feb 7, 2017 at 3:52 am
                                  Facebook
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                                  1. T
                                    THAMBIDURAI.s
                                    Feb 7, 2017 at 6:07 am
                                    At least hereafter Indian software collies will become software Engineers.
                                    Reply
                                    1. V
                                      venkata
                                      Feb 6, 2017 at 4:32 pm
                                      Check the facts first before spreading fear. Introducing a bill is very common thing here. 90% bills die with no light at the tunnel.
                                      Reply
                                      1. Z
                                        zam
                                        Feb 13, 2017 at 2:56 am
                                        US corporations have already started to cancel IT contracts to H1B services company to avoid future losses and hles.
                                        Reply
                                        1. X
                                          xx
                                          Feb 7, 2017 at 2:42 pm
                                          I am not sure why indian media writes all these articles without researching. Bill is only a draft but not agreed. there are many such bills introduced before.Even that come into affect it is going to help software engineers.
                                          Reply
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