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Business EYE JANUARY 15, 2021 | The Indian Eye 38

new rules on H-1B visa application

may not affect indian it firms

About 20 to 30 per cent of Indian IT services employees work onsite with nearly 40

to 50 per cent dependent on the H-1B visa

of immigrants and non-immi-
Our Bureau grants in the country, including

New Delhi H-1B visas used by Indian na-
tionals, citing the devastating
he proposed changes in impact of Covid-19 in the labor
H-1B application selec- market.
Ttion process by US Citi- “This proclamation shall
zenship and Immigration Ser- expire on March 31, 2021, and
vices (USCIS) are prospective maybe continued as necessary.
in nature but will have a minor Within 15 days of December 31,
adverse impact on the margins 2020, and every 30 days thereaf-
of Indian IT services companies. ter while this proclamation is in
According to investment in- effect, the Secretary of Home-
formation agency ICRA, the land Security shall, in consulta-
H-1B application selection pro- tion with the Secretary of State
cess will be based on wage levels this will have a minor adverse on margins, though it is unlikely and the Secretary of Labor, rec-
compared to an earlier selection impact on the margins of Indi- to impact the credit profile of ommend any modifications as
method based on lottery. Under an IT services companies going Indian IT services companies. may be necessary,” said Trump.
the new rule, the USCIS will forward owing to the overall India is currently engaged Earlier, USCIS had an-
select applications offering the high dependence on such visas,” with the US government to nounced a final rule that will
highest wages proffered vis-a- said ICRA. minimize inconvenience to In- modify the H-1B cap selection
vis selected occupation level or dian nationals in the US, said process, amend current lottery
position to attract the highest the indian it services sec- the Ministry of External Affairs procedures, and prioritize wag-
skilled labor. ICRA said this is tor is a major beneficiary (MEA) after the White House es to protect the economic in-
likely to be a mild negative for had issued a proclamation ex- terests of US workers and better
the Indian IT services as H-1B of H-1B visa programme. tending restrictions on the entry ensure the most highly skilled

visa offered wage levels are gen- the Uscis issued a total of immigrants and non-immi- foreign workers benefit from
erally in line or marginally high- grants, including H-1B visas. the temporary employment
er than the prevailing wages as- of 3.88 lakh H-1B visas Speaking at a virtual brief- program.
sociated with the position. during fy2019 (october ing, MEA spokesperson Anurag The final rule will be effec-
Compared to the same, in- Srivastava said: “We have taken tive 60 days after its publication
ternational companies offer 2018 to september 2019 note of the recent proclamations in the Federal Register. DHS

substantially higher wages and period), including fresh of the US Government extend- previously published a notice
are likely to garner a higher ing by three more months the of proposed rulemaking on
share of such H-1B visas unless ones and renewals, of current suspension of entry of November 2, 2020, and careful-
Indian IT services companies which india’s share stood certain immigrants and non-im- ly considered the public com-
increase the wages offered sub- migrants to the United States ments received before deciding
stantially. 71.7 per cent. of America.” He further said to publish the proposed regula-
About 20 to 30 per cent of that India was in touch with the tions as a final rule.
Indian IT services employees With the changes in H-1B US government for increased In August, the Trump ad-
work onsite with nearly 40 to selection process impacting predictability in the visa regime ministration had relaxed some
50 per cent dependent on the margins, Indian IT companies and to minimize inconvenience rules for H-1B visas holders by
H-1B visa. Employee costs form will focus on increasing the off- to Indian nationals in the US allowing them to enter the Unit-
55 to 60 per cent of the revenues shore component and higher for those proposing to travel to ed States if they are returning to
for Indian IT services compa- usage of automation and artifi- the US for bonafide reasons, in- the same jobs, they had prior to
nies with a majority of the same cial intelligence in the medium cluding the movement of Indian the proclamation of the visa ban.
incurred for onsite work. term to manage higher onsite professionals. On June 22, the US Presi-
“The proposed changes are hiring costs. Last month, outgoing US dent Donald Trump had signed
prospective in nature (effective Overall, said ICRA, the im- President Donald Trump is- a proclamation that till the end
March 9) and will not impact ex- pact of proposed changes is ex- sued a proclamation where he of the year in the aftermath of
isting H-1B visa holders. Hence, pected to be marginally negative extended the restrictions entry the COVID-19 pandemic.

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