Frontline IT companies are now banking on their clients, in addition to their own lobbying efforts, to mobilise support against certain proposals in the draft US Immigration Bill that are seen as detrimental to their businesses.
Several large corporations, many of which have large, multi-year technology sourcing arrangements with top software firms, are making their views on the restrictive H-1B visa proposals heard in the right forums, said Sudin Apte, Chief Executive Officer of advisory firm Offshore Insights.
(The US H-1B is a non-immigrant visa that allows US companies to employ foreign workers in occupations that require theoretical or technical expertise in specialised fields.)
In fact, Nasscom, which represents the $108-billion Indian IT industry, has asked member companies to reach out to clients, advisory groups, think-tanks and other stakeholders to highlight their concerns, said Ameet Nivsarkar, Vice-President of the industry body.
“It’s difficult to expect all clients to throw their weight behind us, but clients know the value that IT companies bring to the table. The Bill, in its current form, will impact US competitiveness,” said Nivsarkar.
The US Draft Immigration Bill, which is backed by eight Senators, will limit the overall percentage of foreign workers that outsourcing companies such as Tata Consultancy Services, Infosys, Wipro and others can have in the US.
Companies that have 30-50 per cent of their workforce on temporary visas will have to pay $5,000 for every new foreign worker they hire.
Higher fee
Companies with more than 75 per cent of their workforce made up of H-1B visa holders would be banned from bringing in additional workers. They will also have to shell out a higher fee to get H-1B visa, if the draft legislation is cleared by Congress and signed into law by President Obama.
In a recent conference call with analysts, an official with Cognizant Technology Solutions said its clients were looking for an opportune time to ‘weigh in’.
“Our clients have very sophisticated lobbying organisations. They will lobby as they need these people to remain competitive in the global environment. And if the Bill is passed as it is, it would hurt every bank, every insurance company and every drug company in the country. I don’t think anyone in the Senate or House wants that to happen,” Gordon Coburn, President of Cognizant, said.
Over the last decade, the top approved H-1B workers came from India, China, Canada and the Philippines, a 2011-report by the US Government Accountability Office (GAO) said.