H-1B visa changes could benefit Indian IT professionals: Expert
|Source: The Hitavada Date: 29 Apr 2017 13:02:06|
US President Donald Trump’s proposed changes to the H-1B visa program may end up benefiting Indian IT professionals in terms of higher wages, a US expert on Friday said. The new rules for the visas couldraise labour costs forboth technologycompaniesandbusinesses using outsourcing services in the US, said Ignatius Chithelen,founder andmanaging partner of Banyan Tree Capital Managementin a op-ed at the Wharton website. “These extra costs are estimated to be about USD 2.6 billion a year. The assumption is thatthe visaholderswillbepaid USD 100,000 in annual wages, around the average at major companies based on online job postings, while the number of visas issued remains the same,” he said.
Chithelen said the new visa policy is expected to be announced around November. Fromnextyear,thevisas could go to applicants with the highest wages and skills, and the number of H-1B visas issued may also be reduced since the focus is to “hire Americans”, he said.
The large supply of technologists from India, eager to work in the US, has kept technology wages in the US from surging too high, especially when demand rises sharply as in the current social media boom and during the Internet bubble of the late 1990s, Chithelen said. “If, startingin2018,H-1Bvisas are issued to those with the highest wages and skills,Indian professionals couldbenefit.
Indians graduating with advanced degrees in the US and highly skilled professionals in India applying for H-1B jobs should then be able to find jobs with higher wages and better working conditions,” he said. According toa survey released by Harvey Nash Pulse, six in 10 US IT leaders with large development teams sayTrump’s proposed changes to the H-1B program will make skilled IT talent more scarce and increase the cost to hire skilled IT talent. Almost two-thirds of companies with more than 50 developers said they believe the current H-1B visa program as it stands has helped businesses successfully access highly skilled it talent it said.