![]() Even though our companies have hired tens of thousands of Americans and invested billions of dollars in recent years, they, like others in the sector, utilize such high-skilled individuals to service their clients. With very few exceptions, Indian nationals and others who are granted new H-1Bs or L-1s as well as other visa types after 23rd June will not be allowed to enter the United States until the proclamation expires. this new proclamation will prevent our companies and thousands of other organizations from accessing the talent they need from overseas. ![]() In a statement put out on Tuesday morning, industry lobby association Nasscom said that barring the entry of “certain non-immigrants into America” is “misguided and harmful to the US economy”. Indian companies reject this argument, and consistently point out that their work makes US companies more competitive and efficient. This means that if 10 employees are assigned to a particular project, eight work from India, and two are required to work in the US.The industry therefore requires H-1B and other visas in order to implement this model, although in recent years almost all major software services companies have ramped up “local hiring”.Ĭritics of the Indian IT industry, however, argue that outsourcing companies use H-1B visas to lower their costs of hiring US-based employees – basically because its cheaper to hire an Indian and send her to the US on a H-1B visa than trying to employ an American citizen who already lives in the country for the same job. There are a few smaller exceptions – for workers in essential services (food supply sector) or for medical purposes (COVID-19 research) – but nothing that would help Indian IT companies.Ĭompanies like Infosys, TCS and Wipro have traditionally followed what they call an ‘offsite-onsite’ employee ratio of 80:20. The US president reiterated this claim as recently as last week in an interview to Fox News.īut there appear to be such reprieve announced in the executive proclamation. Trump had initially hinted that “big businesses” that have been dependent on these visas for a long time would have some exceptions. ![]() The H-1B programme is for high-skilled workers (mostly dominated by the American tech industry and the Indian IT sector), the L-1 programme is for transferring employees within a company (a tool that amongst Indian companies is used most prominently by Tata Consultancy Services to move staff from India to US), while H-2B visas are for non-agricultural temporary workers. The move, however, will not impact any current visa holders who are currently located either inside or outside the US. This means that if an Indian national’s H-1B visa application is approved after this date – the process ends before October 1, which is the start date – they will not be allowed to enter the US until the temporary suspension comes to an end. ![]() This means that many popular work visas used by Indian IT companies and Silicon Valley tech giants like Apple and Google – H-1B, H-2B, and a few categories of J and L visas – shall remain suspended until December 31.Įqually significant is Trump’s promise to reform the H-1B programme, specifically by moving away from the existing ‘lottery’ system and prioritising workers who are offered the highest wages.Īccording to the order, the ban kicks in on June 24. ![]() “Many workers have been hurt through no fault of their own due to coronavirus and they should not remain on the sidelines while being replaced by new foreign labor.” But under the extraordinary circumstances of the economic contraction resulting from the COVID-19 outbreak, certain nonimmigrant visa programs authorizing such employment pose an unusual threat to the employment of American workers.” the text of the order notes. “Under ordinary circumstances, properly administered temporary worker programs can provide benefits to the economy. The proclamation, which will not apply to people who already hold visas, paints the decision as a move needed to counter the unemployment crisis kicked off by the COVID-19 pandemic. New Delhi: US president Donald Trump on Monday signed a proclamation that temporarily suspended a range of worker visas for non-immigrants until the end of 2020, in a move that will have serious consequences for Indian techies and the domestic IT industry. ![]()
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