US Border Security Bill: Indian IT Lashes Out!
The Indian IT Industry has raised its concerns against the discriminatory nature of the $600 million US Border Security Bill . Would it affect Obama's India visit in November this year?
There are millions of Indians working in the US on H1-B and L-1 visas. However things seem to get murkier for the Indian IT immigrants with the US Congress approving the Border Security Bill, just months before the US elections. What seems to be the pain point for the Indian IT Industry especially is that this bill has steeply increases the work visa fees mainly used by Indian IT firms. The hike in visa fees could actually cost Indian IT firms a whooping $250 million annually. The new fees may discourage some firms from hiring talent that Indian tech firms might need to innovate, expand and ultimately create more jobs.
Nasscom has come out very strongly supporting the Indian IT industry and condemning this bill. Nasscom lashed out on the comments of the Senator Charles Schumer stating that the bill is clearly an election rhetoric and is discriminatory in nature. President of Nasscom, Som Mittal argued that The Indian IT industry while recognized as a success story, is a fraction of the US technology business and it is shocking that the Senator chose to blame this sector for all generic issues of the US increasing unemployment, lower wages, and students not taking up technology education . This comment came as a reaction after lawmakers insisted that in the current economic environment, imposing the taxes and fees on foreign workers and companies was the best way to raise the money needed to address two of the country's most pressing issues: unemployment and illegal immigration. High-tech companies will suffer the burden in financing the bill because several skilled Indian workers use the special visas to work for clients in the United States, while U.S.-based firms that issue the same visas typically will not face the higher fees.
Certain US politicians are trying to find out a convenient anti-outsourcing target in Indian companies that use H-1 B and L-1 visa. There definitely will be a furore and political compulsion for retaliation in India. Indian firms such as Infosys, TCS, Wipro, and many other already avail H-1B and L-1 visas to fly their employees to US as on-site engineers. As per Nasscom's estimates, Indian companies (mostly IT) apply for 50,000 visas every year, including H1B and L1 visas, besides renewal of old visas.
The move has come at a time when the Indian IT industry is looking very optimistic. The fate of millions of Indian workers in the US still hangs on with the passage of US Border Security Bill. So does the fate of Indian IT industry. According to the Nasscom report, the H-1B visa applied by Indian companies is closely related to the US employment scenario. In 2009, the top 10 Indian companies have filed for 4555 visas, a mere 6% of the total visas issued. Nasscom urges that the US Congress needs to understand the benefits of the Indian tech firm as they could bring in the right talent to create economic growth, innovation and job creation in the US. India understands the concerns of the US government on its legitimate right and responsibility to protect its borders, however foreign companies should not be asked to bear the cost of this. Obamas signature on the bill will further impair the administrations credentials in India. It could also cast a shadow over Obama's India visit this year in November.
There are millions of Indians working in the US on H1-B and L-1 visas. However things seem to get murkier for the Indian IT immigrants with the US Congress approving the Border Security Bill, just months before the US elections. What seems to be the pain point for the Indian IT Industry especially is that this bill has steeply increases the work visa fees mainly used by Indian IT firms. The hike in visa fees could actually cost Indian IT firms a whooping $250 million annually. The new fees may discourage some firms from hiring talent that Indian tech firms might need to innovate, expand and ultimately create more jobs.
Nasscom has come out very strongly supporting the Indian IT industry and condemning this bill. Nasscom lashed out on the comments of the Senator Charles Schumer stating that the bill is clearly an election rhetoric and is discriminatory in nature. President of Nasscom, Som Mittal argued that The Indian IT industry while recognized as a success story, is a fraction of the US technology business and it is shocking that the Senator chose to blame this sector for all generic issues of the US increasing unemployment, lower wages, and students not taking up technology education . This comment came as a reaction after lawmakers insisted that in the current economic environment, imposing the taxes and fees on foreign workers and companies was the best way to raise the money needed to address two of the country's most pressing issues: unemployment and illegal immigration. High-tech companies will suffer the burden in financing the bill because several skilled Indian workers use the special visas to work for clients in the United States, while U.S.-based firms that issue the same visas typically will not face the higher fees.
Certain US politicians are trying to find out a convenient anti-outsourcing target in Indian companies that use H-1 B and L-1 visa. There definitely will be a furore and political compulsion for retaliation in India. Indian firms such as Infosys, TCS, Wipro, and many other already avail H-1B and L-1 visas to fly their employees to US as on-site engineers. As per Nasscom's estimates, Indian companies (mostly IT) apply for 50,000 visas every year, including H1B and L1 visas, besides renewal of old visas.
The move has come at a time when the Indian IT industry is looking very optimistic. The fate of millions of Indian workers in the US still hangs on with the passage of US Border Security Bill. So does the fate of Indian IT industry. According to the Nasscom report, the H-1B visa applied by Indian companies is closely related to the US employment scenario. In 2009, the top 10 Indian companies have filed for 4555 visas, a mere 6% of the total visas issued. Nasscom urges that the US Congress needs to understand the benefits of the Indian tech firm as they could bring in the right talent to create economic growth, innovation and job creation in the US. India understands the concerns of the US government on its legitimate right and responsibility to protect its borders, however foreign companies should not be asked to bear the cost of this. Obamas signature on the bill will further impair the administrations credentials in India. It could also cast a shadow over Obama's India visit this year in November.
Comments
Post a Comment