H-1B Policy Changes is Threatening to US Tech Sector

A Recent report has shown that the rate at which the United States Citizenship and Immigration Services (U.S.C.I.S) denied initial H-1B appeals filed by IT companies of India in 2018 reflects that regular changes in the policies of H-1B visa can be very detrimental to the sector. Notwithstanding, the situation can be used positively by companies owned by Indians to enlarge and widen their coasts.

H-1B Policy Changes is Threatening to US Tech Sector

The rate of denial for TCS, Wipro, Tech Mahindra, Mindtree and Infosys were 22%, 23%, 26%, 40%, and 54% respectively; whereas Google, Amazon, and Facebook which are non-consultancy IT companies based in the US have only 1% denial rate.

Experts bear the feelings that companies’ profitability will be hurt as they are forced to hire local workers in the US since they cannot move low-cost workers from Indian workers to the US. In addition, this would slow the pace and potential of Indian IT professionals in the US.

According to the Founder and CEO of EB5 BRICS (an immigration advisory company), Vivek Tandon, the US is experiencing the most significant shortage in tech, after 2008. From the latest survey of over 3000 tech firms, it was realized that about 65% of these firms are struggling to find appropriate IT talents to boost their operations. These shortages affect most aspects of Tech from cybersecurity, Data Analysis experts, Artificial Intelligence, Cloud computing to several others. As a result, companies are now considering countries that have friendly immigration policies, like Canada; because of the absence of local talents in the US and the inability to bring tech worker from India.

He further stated that the biggest attraction of the H-1B visa is that it offers you a green card on a predictable and stable route. However, with frequent policy changes, delayed processing times, ban on work authorization for H-4 visa, general anti-immigrant rhetoric, the EB-5 visa may now be a likely alternative for Indians to get a green card.

According to Rogelio Caceres, Co-founder and CCO LCR Capital Partners, the changes in the policies of H-1B visa may be a strategic way to enhance appreciative demand for education in America by giving visa priority to immigrants those who have studied in the United States. “Changes in the policy around H-1B visa could affect the IT sector of the country, thereby opening gateway of employment to them”, he opined.

Seeking Shelter in other countries

Caceres further said that with the confusion everywhere, IT professionals from India are turning to more favorable countries like Canada who has opened its arms for IT companies.  Also, some of the companies are already going to India. In the same way, some European nations are looking at chances particularly the UK Post-Brexit.

Similarly, Indian IT services organizations may be considering hiring locals from the US if more strict norms are applied to the H-1B visas. “Already H-4 visa holders who are spouses of H-1B visas are facing possible work restrictions. Overall, things are not going so well with H-1B visa holders. This generally means that Indian firms will have to employ local talents in the US which also means their profitability would be threatened as well.” told Kris Lakshmikanth CEO and founder of Head Hunters India.

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