US politics vs Indian IT: Visa norms to get much tighter

The going is getting tougher for the Indian IT sector, with the US authorities trying to rein in outsourcing as they fear a local backlash.

The latest move from the US is aimed at blaming outsourcing on the companies that take up such jobs, rather than on those giving the contracts.

A report in Business Standard said the US may make it mandatory for Indian software companies to make more disclosures of employees sent on short-term business visas.

Companies such as TCS, Infosys and Wipro, which routinely send their staff for onsite work, will now have to disclose personal details of such employees and also"names of the American companies they are assigned to", the report said.

This is likely to render taking quick decisions on staffing difficult for the Indian firms because giving such details is time-consuming.

[caption id=“attachment_426191” align=“alignleft” width=“380”] US may make it mandatory for Indian software companies to make more disclosures of employees sent on short-term business visas. AFP[/caption]

Moreover, it may have dangerous consequences as the atmosphere there is already biased against outsourcing.

The condition will also force these companies to make public the details of their businesses in the US. In most cases, this may not be practical, as they are bound by a confidentiality agreements.

The Indian companies will also have declare that “the foreign worker will be paid at least the wages people in the same occupation in the US get”. This is likely to push up the wage bill of the IT company significantly.

Another condition is that giving an attested assurance that employing the H-1B worker “will not adversely affect the working conditions for others employed in the area”.

The is the most impractical of the conditions, as such an assurance can be given by the company that outsources the job and not the company that takes up the outsourcing job.

A PTI report had earlier said that an increase in visa fees is likely to have an adverse impact on the net profit margins of IT firms. The companies had witnessed a squeeze on the operating margins in the first quarter due to the difficult visa norms.

The developments have forced the software companies to hire visa experts and immigration lawyers to ensure compliance with the laws there, a report in The Times of India said.

Over the last few years, law suits against Indian companies have surged, which has prompted this move, according to the report.

In addition, the authorities there are also conducting a visa compliance audit.