TRUMP'S H-1B VISA BAN TO IMPACT INFOSYS, WIPRO, COGNIZANT, TCS AND MANY OTHER COMPANIES - EXPLAINED 

After US President Donald Trump passed an order to suspend H-1B, H-2B, J and L class visa holders to build up the economy amid the coronavirus pandemic, most of the top IT firms in the US and India are concerned over the matter. 

This ban will come into effect immediately, and will only expire on December 31. Amid the deadly coronavirus pandemic, unemployment in the US has skyrocketed in recent months suggesting that nearly 30 million people have lost their jobs.

With the new suspension IT firms and professionals are worried. Below is the reason as to how will the ban impact Indian tech companies:

As per Times Now report, the visa ban will have a disproportionate impact on Indians and Indian IT companies. Out of the 2.5 lakh H-1B visa applications that the US received in March 2021, nearly 1.84 lakh came from Indians. 

Currently, there are nearly three to four lakh H-1B workers in the US, who are working with Indian technology firms like Infosys, Wipro, Cognizant, and Tata Consultancy Services (TCS), while Wipro, spends approximately 20 percent of its revenue towards subcontracting workers with H-1B visas. 

So the share of Indian firms among the top 10 visa recipients in 2019 was 24 percent, which was a marked reduction from 51 per cent recorded in 2016. However, a report published by Kotak Institutional Securities had stated that a ban on H-1B and L-1 visas for longer than September would have a significant impact on the talent supply chain of Indian tech firms.

The impact will not only be seen on Indian tech firms but also on US based top firms like Amazon, Google, Microsoft and Facebook.