IT cos' reputation is taking a hit: Nasscom

Bengaluru: Indian IT industry body Nasscom on Wednesday said that the new executive order signed by US President Donald Trump to promote ‘Buy American, Hire American’ campaign is driven by “persistent myths” to damage the reputation of the Indian IT sector.

“We believe that the current campaign to discredit our sector is driven by persistent myths, such as the ideas that H-1B visa holders are ‘cheap labor’ and ‘displace American workers’ who train their replacements,” none of which is accurate,” said the statement released by Nasscom.

However, the likely amendments to the existing H-1B visa program affects the Indian IT services firms that have adopted off shoring business models. In addition, the move would also hurt thousands of US businesses and their efforts to be more competitive by hindering access to needed talent, according to Nasscom.

Trump’s executive order has directed the federal bureaucracy to look for new ways to restructure and restrict the H-1B system, and enforce the law more vigorously.

However, the IT industry body said that nothing is being proposed that would impact or change the FY18 H-1B lottery that is currently underway.

Ashok Soota, the founder of Happiest Mind Technologies and IT industry veteran said that the firms are waiting to gain clarity on the likely changes to the H-1B visa policy.

Along with the US, Singapore and Australia have also been looking for ways to curb their work visa programs, which would mean that the Indian IT companies are in the midst of uncertainty.

According to a report released by Assocham, the Indian IT firms are bound to face disruptions by way of higher costs due to visa curbs. The rising rupee is also expected to aggravate the situation further for the firms.

As per the paper released by Assocham, the reverses resulting from the tightening of the H-1B visas would force IT giants to create fundamental changes in their strategies in terms of hiring, salaries, jobs, impacting employees in India too.

However, Nasscom said that it will work towards lobbying for a level-playing field.

Commenting on the Australian government’s decision to scrap 457 visa category,  Nasscom said, “We will be working closely with the Government of India and Australian government to understand more details on the changes and ensure how these could be implemented seamlessly to ensure business continuity and value for Australian customers,” the statement said.