Disruptive moves on H-1B visa to hurt both India, US: Nasscom

New Delhi: Any disruptive move on the visa front will be detrimental for both India and the US, with reports suggesting that Washington may be mulling new rules to prevent H-1B visa extensions, software body Nasscom has said.

Estimates show that such a move could lead to deportation of over one million H-1B visa holders in the US — many of them Indians — who are waiting for their green cards.

“It is not only about the Indian IT industry but about all Indians who use H-1B visas... Given that there is a real problem of shortage of skilled professionals in the US, any disruptive move will be detrimental for both India and the US,” Nasscom president R. Chandrashekhar told PTI.

He was reacting to reports suggesting that the US Department of Homeland Security is considering new regulations, which will prevent H-1B visa extensions during pendency of green card approvals.

In other words, if this materialises, the move would prevent foreign workers in the US from keeping their H-1B work visas, while their green card application is under processing.

This is being seen as part of US President Donald Trump’s ‘Buy American, Hire American’ campaign that seeks to bring back jobs to the country. “It is one more step in a series of steps seen over the last one year. While each one individually may have a small impact, cumulatively the impact becomes very significant,” Mr Chandrashekhar said.

Meanwhile, Mahindra Group chief Anand Mahindra sought to soothe frayed nerves in a tweet that read “If that happens, then I say ‘Swagatam, Welcome Home.’ You’re coming back in time to help India Rise”.

According to Nasscom, the use of visas by Indian IT firms has fallen by 50 per cent in the last two years and that the number now stands below 10,000 (of the 85,000 H-1B visas issued annually).

To brace against the impact, Indians IT firms have also been ramping up local recruitments and training manpower in the United States.

Greyhound Research CEO Sanchit Vir Gogia said changes in the H-1B visa arrangement will add immense cost pressures on IT firms.  s0saverage margin hit for an IT services provider will be in the range of 5-10 per cent year-on-year, depending on the total base of employees currently on H-1B, the existing compensation and need for onsite in near-term,” he said.