March 24, 2017

Trump's next executive order could clamp down H-1B visas

02 February 2017, 12:42 | Felicia Christensen

Carlos Barria Reuters

Carlos Barria  Reuters

California Republican Darrell Issa had re-introduced a bill aimed at cracking down on the H-1B visa abuse by making major amendments to the existing program, allowing only highly skilled foreign employees work in the US.

Shares of India-based information technology companies suffered on Tuesday after a Bill to "reform" H-1B visa norms was tabled in the US House of Representatives.

With this legislation being passed the effect on Indian IT stocks was immediate.

File picture of Indian tech workers. Wipro and Tech Mahindra also registered falls of 1.62 and 4.23 percents respectively, closing at values of Rs. 457.10 and 451.75.

Correction: It may not be a good time to be a non-American in Trump's America. Not a single day goes by when the US President is not issuing some controversial order or the other. Meanwhile, Syrian Refugees get an indefinite ban.

Spicer added that Trump will do so "through executive order and through working with Congress".

The text of the order does not impose an immediate freeze on the number of H-1B visas issued this year, but Peddibhotla said the language suggests there will be a reduction in the number of visas issued in future years. A related visa is the L1, which is given to employees of a company who are transferred to the US.

A leaked draft of the executive order titled "Protecting American jobs and workers by strengthening the integrity of foreign worker visa programs" appeared on the New York Times Web site January 27. It would also establish wage requirements for L-1 workers and improve H-1B wage requirements to encourage companies to hire qualified American workers and prevent them from using foreign workers as a source of cheap labor.

Most Indians settled in the USA are in level-2 professions, followed by level-3 and level-4.

"We're aware of 76 Microsoft employees who are citizens of these countries and have a USA visa and are therefore affected by this new order", Microsoft stated in a letter to staff on Friday, adding there may be more.

A survey in 2013 showed that there are 4.8 lakh techies from the Telugu states working in the U.S. at different levels, a lot of them in IT companies in Level-2 professions.

In December 2016, the information technology stocks were hit by tough talk on visas by USA president-elect Donald Trump, while oil retailers declined after crude prices surged to their highest since mid-2015.

All of this is pressuring the stock prices of Indian technology companies-some falling as much as 9 percent Tuesday.

Over 60% of Indian IT revenues comes from the US.

Bengaluru in particular, the hub of the IT industry, will be the epicentre of this meltdown that Trump has caused.

The Indian IT industry is already battling slowing growth amid big changes in the technological landscape (like automation and artificial intelligence) and global headwinds like Brexit.

IT analysts reckon that the new law, if and when it passes, will have far-reaching implications not only on Indian companies but on the United States economy as well since most US-based Fortune 500 organisations are "deeply invested and dependent" on Indian IT services providers. In many cases, the companies are hiring for highly technical positions in the fields of science, technology, engineering and math.

Other News

Trending Now

Federal judge blocks Trump immigration order, suspending deportations
Roughly half have already been interviewed by U.S. immigration officials. A chaotic scene played out in the arrivals terminal at John F.

Betsy DeVos Could Spell Trouble for Students, Educators Nation Wide
Yet DeVos will apparently be our new secretary of education, the person in charge of pushing educational change on the country. We deserve a qualified secretary who can lead from day one and who we can hold accountable for his or her actions.

Mary Tyler Moore's 3-Decade Love Story with Her Husband
She giggles, she snorts, she breaks into louder laughter, all the while trying to play it off with coughs and look-away gestures. Over the past five years, the asking price has declined by over a million dollars, dropping down to $1,695,000.

Trump talks with Putin, foreign leaders in round of phone calls
Reports from the U.S. said Mr Trump might tell Mrs Merkel he was reviewing the sanctions, but this was not confirmed . Trump is working to build personal relationships with the leaders of traditional US allies.

Mario Balotelli speaks out after suffering racist abuse against Bastia
But this morning he took to Twitter to reveal that he was the subject of racist abuse from some Bastia fans during the game. Commentators from broadcaster Canal Plus, which covered the game, made no mention of any racist abuse during the match.

Australian Open 2017: Rafael Nadal relishes Roger Federer reunion
Federer could have an advantage Sunday, having played a day earlier than Nadal, on the blue hardcourts of Melbourne . Wawrinka has won three major titles, while Federer has failed to win a Grand Slam since 2012.

Nintendo Switch: Soon more popular than the Xbox One?
According to a recently released image from a Zelda fan site, Breath Of The Wild's map is about to take Skyrim's lunch money. Söderlund then adds that if the Nintendo console sells well, EA would be prepared to release more games on the platform.

Resident Evil 7 Review Roundup: Scary Good, or a Nightmarish Mess?
But this is gaming's most storied survival horror franchise - meaning at some point it's got to tie back into the metafiction. Resident Evil 7 lands on Steam on January 24th and can be purchased from the Steam store for $59.99/£39.99.

Frontier adding service from ABIA to San Diego, Washington DC
The latest additions are courtesy of Frontier Airlines, who will provide nonstop service to Washington and San Diego this spring. The Minneapolis flight, which also begins April 21, will be Monday, Wednesday, Friday and Saturday on a 150-seat A319 aircraft.

Former leader of The Gambia leaves country following threat of military intervention
Dogara said this while reacting to reports that Yahya Jammeh, the former Gambian President has gone on exile. Jammeh had been in charge of the country since 1994, having seized power during a military coup.