With the latest missive from the Donald Trump administration on H-1B visa, cautioning companies against misuse, the immigration issues of the Indian IT sector are back in news. And it is not the US alone that is drumming up protectionism for political gains. However, industry observers say that Indian IT services companies are resilient enough to weather such issues.
In a fresh blow to software professionals, the Trump administration has moved to bar entry-level programmers from the H-1B visa programme.
The Indian software services companies will breathe a sigh of relief as the Indian ministries, authorities and industry lobby had a dialogue with a visiting eight-member US delegation headed by Congressman Bob GoodLatte, on the ongoing concerns of H1-B visa holders.
Despite the impending dark overtones cast on India’s IT sector, the reality on the ground is far from anything bleak. Irrespective of the announcements from US president Donald Trump, Brexit concerns and the slowing global economy, the IT sector seems to have factored the low spell and will be only marginally impacted. The sector will likely grow 8-9 percent in FY2017E and could grow at same pace or accelerate in FY2018, according to a technology report from Kotak Instituitional Equities released a week ago.
Donald Trump’s efforts to limit the number of temporary workers in the US will dent India’s software industry.
Today a legislation impacting H1-B visa programme has been introduced in the US House of Representatives making it difficult for companies in the US to employ skilled foreign workers. Among other things, the bill more than doubled the minimum wage requirement of H1-B visa holders to US $130,000.
It may not be a good time to be a techie in America. Correction: It may not be a good time to be a non-American in Trump’s America.
Software services industry, already facing pressures on profitability and revenue, has become the latest target of the Trump administration’s moves to protect American jobs.
India’s information technology (IT) sector will face temporary setback to move workers from India to the US with the bill introduced in the US House of Representatives that mandates minimum wages of H1B visa holders at $130,000, double the current limit.
Indian engineers have for long viewed the US as the land of El Dorado with its promise of riches — professional and personal. But they are now a deeply worried lot as nationalist rhetoric turns shrill in Donald Trump’s America.
January 20, 2017, will mark the commencement of the four-year term of Donald Trump, the 45th President of the United States. Since his presidential election win on November 8, 2016, many quarters of the global industry have been abuzz with possible outcomes of the protectionist sentiment in the US – a key pillar of Donald Tump’s campaign. Here’s what we at Greyhound Research, the Technology Transformation Research & Advisory arm of Greyhound Knowledge Group, believe will be the impact on the Indian IT Services firms.
The hike in visa fees by the US will not have any major impact on the Indian IT industry since the quantum of hike is not significant, say analysts.
On Friday, the US Congress doubled visa fees to $ 4,500 on the H-1B and L-1 visas citing that it will be used to fund a 9/11 healthcare act and biometric tracking system, even as President Barrack Obama’s term is coming to an end. The US House of Representative is slated to vote on the $1.1 trillion spending bill deal on Thursday.