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US lawmakers’ fresh attempts to introduce a bill aimed at tightening rules for H-1B visas are “discriminatory” and a matter for concern, Indian IT industry representatives said on Friday.
Although the bill did not find much support in the US Congress when it was introduced earlier, IT players are worried about the intent behind and the timing of the second attempt, which comes days ahead of Donald Trump’s inauguration as President on January 20.
Reflecting these concerns, IT stocks fell across the board on the BSE on Friday.
Nasscom Chairman CP Gurnani says the move will have a financial impact on the industry if the bill goes through. However, Gurnani, who is also Managing Director and CEO of Tech Mahindra, notes, that a lot of process are involved before it becomes law.
According to Sandeep Gogia, Associate Director, Equirus Capital, IT companies may have to start hiring in the US.
Trump campaigned on the promise of bringing jobs back to the US, but the Indian IT industry reckons there aren’t enough professionals with the requisite skills in the US. The shortage in the skilled workforce is estimated at 450,000.
“It is not easy to skill up people overnight, and the proposed rules for high-skilled worker visas will not affect India in the near future,” says Bimal Raj, Partner, Singhi Advisors, investment banking firm.
Trump will gain greater political dividend by bringing back manufacturing jobs in the rust belt States that voted for him than by repatriating software jobs to the East and West Coast tech hubs, reason analysts.
“For Trump, pressuring Indian and US firms to shift software development work to the US may not be worth the effort,” says Peter Schumacher, CEO, Value Leadership Group.
Gurnani noted that India Inc is a big investor in the US. Wipro had bought Appirio for $500 million and Tech Mahindra bought LCC for $300 million. “We are hiring from the universities there,” he said. Nasscom would submit a representation to the new US administration highlighting its work in these areas, he added.
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