Indian IT services companies are likely to step up offshoring and local hiring in the US as wages paid to visa holders are expected to go up owing to a fresh proposal by the Donald Trump administration.
A proposal in this regard was submitted by the Department of Labour (DoL) to the Office of Information and Regulatory Affairs (under Office of Management and Budget) last week. Though the fine print is not publicly available, legal experts are of the opinion that this would change the wage conditions of H1B, L1, and other non-immigrant visa holders.
“In absence of details about the proposed wage changes, it’s difficult to quantify impact on Indian IT companies, but it will certainly inflate cost of H1B visa talent pool and may further increase offshoring and localisation efforts of Indian IT players,” said Ruchi Burde, assistant vice-president, BOB Capital Markets.
Source: Business Standard
