BENGALURU: The change of guard in the United States—one of the key markets for India’s IT industry—has already signaled a positive change as far as the H-1B issue is concerned. According to HCL Tech’s Chief Human Resources Officer (CHRO) Apparao V V, the Trump administration’s proposed increases in wages for H-1B visas is unlikely to go forward and, even if implemented, will be done in a phased manner over two-three years.
After President Joe Biden was sworn on January 20, the White House Chief of Staff had asked relevant departments to freeze the Trump era rule requiring selection of H-1B applicants with the highest salaries. The new Joe Biden administration at the White House has also reportedly proposed a host of immigration changes, including one offering work permits to dependents of H-1B visa holders.
“So there is a bit of flux in all those policies... Because they have come in suddenly, they have not been given enough time. That is the reason it was put on hold in the first place and also, the court has rejected it. Now, the new government can stop it. And we are hearing that they are likely to do that. But we don’t know...,” the HCL Tech executive said. He added that despite strict measures, H-1B visa holders were in huge demand in the US last year as can be gauged from the fact that the administration extended the approval rounds.
On the other hand, Indian IT companies have also reduced their dependency on H-1B hires by focussing on hiring local talent, he noted. Apparao said that currently HCL Tech’s localisation rate is 70 per cent, which means that a majority of its workforce in the United States now comprises local workers.
The same holds true for its peers in the industry such as like Infosys, TCS, and Wipro. However, India remains a key geography when it comes to hiring talent for the country’s IT industry with 90 per cent of the firm’s total headcount from the country. “Hiring from India has only picked up in recent years from 70 per cent to 90 per cent,” Apparao added.