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Raja Simhan T.E.

When the IT sector was in a boom, the H1B visa was mostly issued to software professionals. However, following the IT industry downturn, software companies gradually reduced sending professionals to the US.

CHENNAI, June 27

THE technology downturn, coupled with slow recovery in the US economy and the September 11 terror attacks, led to a sharp fall in the issue of H1B visas in the last few months from the US Consulate, Chennai — one of the largest issuers of visas to the US in the world.

During October 2001 to May 2002, the US Consulate here issued only 11,281 H1B visas (temporary visitors, mostly to software professionals), compared to 26,648 during the same period last year, sources in the Consulate said.

The total visas processed by the Chennai centre declined to 100,712 during October-May as against 121,286 visas during the same period last year. However, issue of student visa increased to 5,698 (4,159). This trend, sources said, was due to lesser employment opportunities in the market compared to the last couple of years.

Issue of L1 (intra-company transferee) visa increased to 5,280 (3,618), while others visa including tourist and short term business travel declined to 78,453 (86,861), sources said. The all-India trend should be same, sources added.

In the last four-five years, when the IT sector was in a boom, the H1B visa was mostly issued to software professionals. However, following the IT industry downturn in the last 18 months, as part of a cost cutting measure, software companies gradually reduced sending professionals to the US, sources said.

Further, after September 11 attacks on the US, the situation only worsened and the number of software professionals being sent to the US fell sharply. In addition, there was a significant shift in software business from onsite (in the US) to India to cut costs. All these were reflected in the number of H1B visas issued by the Chennai centre, sources in the software industry said.

Meanwhile, the number of applications for H1B visas during the second half of fiscal year 2002 (October 1, 2001 - March 31, 2002) declined by half from the previous year to 105,800, says a recent INS (Immigration and Naturalisation Service), US.

Further, the denial rate increased, with an approval rate of only two-thirds of what it had been — only 44,900 applications were approved. This information pertains not to all H-1B visa applications, but only to those that are subject to the annual cap, currently set at 195,000, the INS data says.

"The numbers reflect the technology downturn and the slow progress in the US economy," sources said. Chennai US Consulate sources said nearly 80 per cent of those applying for visas received them.

The US companies or those hiring professionals for them have to apply with the Immigration and Naturalisation Service at least six months in advance, indicating the number of skilled personnel they will be requiring. Once the INS gives its approval, the numbers are passed on to companies here and they then apply for visas.

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