Washington: The "killer provision" of ban on client site placement for H-1B workers, which may prove to be detrimental to the interests of major Indian IT companies, remains in place despite a last minute deal reached between key Senators on certain provisions of the immigration bill.

Continued presence of such a problematic provision in the bill, which was passed by a key Senate panel yesterday, industry sources said that it would not only badly hit Indian IT companies, but also disrupt operational capabilities of a large number of key American companies as well.

"The ban on client site placement for H-1B Workers is the most damaging of all provisions of Senate Bill 744, which was not addressed by any of the amendments proposed by Senator Hatch.

"This specific provision flatly prohibits any company with more than 15 percent of its workforce on H-1Bs from placing H-1B workers at client sites or contracting for the services of those workers," Ron Somers, president of U.S. India Business Council (USIBC), told PTI.

"If this provision becomes law, it will severely impact US companies' operational capabilities by disrupting such companies from sourcing their work from the most competitive service providers," Somers said after Senate Judiciary Committee passed the landmark Comprehensive Immigration Reform Bill with more than 200 amendments.

Read: Infosys's IT Division Unlikely To Give Salary Hike

Also read: 5 Apps That Make BYOD Transition Easy