New U.S. Immigration Bill Sounds Doom To Indian IT Cos



Though much of the bill deals with illegal immigration and border security issues, it includes a special provision on H1-B and L-1 visas which can place tabs on the functionality over Indian IT companies in U.S. The bill will also prohibit a company from having more than 50 percent of its workforce on H1-B or L-1, and it drastically raises visa fees. It also asks the companies to pay much higher wages for its employees and to put mandatory ads to recruit U.S. workers before hiring an H1-B visa holder.

The bill will raise the cap on H1-B visas from 65,000 a year to between 1,15,000 and 1,15,000 and 1,80,000, depending on the demand. Visa fees for a company using H1-B workers could rise to $5,000 per application if 30-50 percent of its employees are on H1-B.  And if its workforce is 50-75 percent on H-1B, it will have to shell out $10,000 for each visa application. Adding to the worries, the bill wants companies to reduce dependence on H1-B visas by 2016 down to 50 percent of the workforce. Then there are several reporting requirements to the department of homeland security.

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