INFOSYS, TCS, WIPRO AND MANY INDIAN IT MAJORS TO SUFFER BY 'TRUMP'S ORDERS'! - REPORT

As American employee continue to lose jobs, US President Donald Trump is considering suspension of H1-B visas as well as other visas in order to open more employment opportunities for Americans. As per the latest reports, the US labor department estimates almost 41 million Americans to have lost their jobs due to the pandemic. 

The proposed visa suspension might come into effect from October 1, when new visas are issued. This will affect the H1-B holders coming into United States from other countries. H1-B is one of the most sought- after work visa for employees across the globe and especially for Indian IT workforce.

US visa rejection rates for Indian IT companies have increased from 6 per cent in 2015 to 24 percent in 2019. Almost 60% of the H1-B workers are paid below the median wage for the respective role as per a study conducted by the Economic Policy institute, an American Think-tank. 

US being one of the biggest markets for Indian IT Majors, the rejection of visas will profoundly affect the Indian IT landscape. Especially companies such as Tata Consultancy Services (TCS), Infosys and Wipro might have to increase hiring in US which is likely to increase the employee expenses of these companies. 

There is also a growing demand for technology workers to be considered as essential workers. “[We] seek exemption for technology workers as essential workers, from any restrictions that may be imposed in a second White House Proclamation,” NASSCOM, India’s IT Industry body said. “Priorities established by DHS’s CISA (Cybersecurity and Infrastructure Security Agency) that designates key categories of ICT workers as essential service, should help define the types of essential workers.” 

“Until the pandemic hit, US President Donald Trump was banking on the economy and jobs to swing the elections in his favour. But with those in dire straits, Trump may need to rake up issues of protectionism and more jobs for locals to win over the electorate. That would, in turn, hurt the prospects for IT professionals hoping to make it big in the US,” India Today cited in its report.