HYDERABAD: The proposed new amendment to the H1B1 visa tabled in the US on Tuesday could mean more talent is retained within India, say IT experts.
The reforms sought out in the bill would hike the minimum salary cap from the present $60,000 to $130,000.
The bill presently in its draft form is expected to be ratified through an executive order by Donald J Trump, President, United States of America. The annual application process for the visa begins only in April this year.
“The move is an effort to make American IT professionals attractive for hiring over Indian professionals,” said Sudeep Kumar Sen, Assistant Vice President, Teamlease, a human resource outsourcing firm. But in doing so the profit margin of the Indian companies will shrink. This will prompt many of them to look to European countries. “There are not many companies that can afford to employ Americans IT professionals who demand better pay than their Indian counterparts,” he added.
“In the last few years the number of Indian consultants visiting the US has dropped from 25 to 10 pc, so it is this small margin that will be affected by the new reforms,” said Ranga Pothula, president, Hyderabad Software Enterprises Association (HYSEA).