Indian IT association NASSCOM is going to make an appeal to the US Senate to consider the legislation restricting Indian It companies to bring in the workforce on H1B Visas. It passed, the bill can have an adverse effect on the companies and the nation itself. The bill is aimed to protect the rights of the local labor and preferring American labor over foreign ones.
Many Indian It companies fall under the proposed 50 – 50 cap. They may require quite some time to attain the mix. H1B Visas are already quite expensive and end up adding to the significant CTC made up by work permit costs, a minimum wage for immigrant workers and other expenses. Currently, around 70% of the work of USA is met by outsourcing. Companies would profit from hiring local workforce but unfortunately, there is a dearth of adequate labor to meet the high demand of jobs. The cost ends up being higher than the CTC required for a citizen of America.
NASSCOM is Hopeful
The chairman of NASSCOM, CP Gurani is hopeful that things will work out for Indian IT companies. The companies and USA are not in good terms right now. But the nation does realize the importance of the H1B Visas as most of its work is outsourced. NASSCOM will appeal against this damaging aspect of restriction on issuing H1B Visas.
The method is essential for companies to get the required skills in the STEM area (Science, Technology, Engineering, and Math). USA is unable to fulfill the job positions created by its demands from its local population. For this reason, H1B Visas act as a solution which balances the demand and supply of work. NASSCOM believes H1B Visas are required to deliver products and services when it is not possible to achieve it through local labor.
The restriction will not stop companies from getting the manpower they need. America needs technology to survive and it is in their own interest to get it. The revenue from IT industry is expected to rise to $ 205 billion by 2025. It will be a huge loss for USA if they fail to tap in and benefit from the huge opportunity at hand.