A week ago, President Donald Trump’s decision to suspend the H1-B visas till the end of 2020 put the Indian firms in intense worry. But now the circumstances seem to have changed.
According to a Crisil’s report, the top 15 Indian Information Technology firms have already started to reduce the number of savvies they send to the United States. The decision of the United States on the suspension of H1-B and L1 visas applies to the new permits issued in the last six months of 2020. The visa renewal applications will not be affected by this decision taken.
Further, Crisil said that in the last three months, the number of H1-B visas has been declining gradually as many employees deny proceeding ahead. Till 2016, the employees’ denial rate was around 6%, which was raised to 8% in 2017, after the presidency of Donald Trump. And if we talk about the present time scenario, this denial rate has reached 39%, which is the highest percentage to record in history.
In addition to this, Anuj Sethi, Senior Director, Crisil Ratings, stated- “On the other hand, the share of local hires in their US onshore employee mix has steadily increased from 30-35% in fiscal 2017 to about 55-60% in fiscal 2020. And with firms aiming to increase the share of local talent, especially with digital skills, the transition impact is expected to be marginal for them,” Source: Financial Express
“Assuming employee requirements through new visa approvals are completely met via local hiring and considering a 25% premium for local hiring over the H1-B route, the additional cost burden on IT firms may not exceed Rs 1,200 crore,” a report by Crisil wrote. Source: Financial Express
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