• An Overview on Threats to Indian Outsourcing by New U.S. Immigration Bill

      An Overview on Threats to Indian Outsourcing by New U.S. Immigration Bill

      The future of Indian outsourcing is in trouble due to an upcoming new American immigration bill. It is expected by Indian companies that it would expected to limit the amount of foreign workers they can bring to the United States.

      Threats to Indian Outsourcing

      Based on the relevant information it is clear that The Senate immigration bill, which has been currently pending in the United States Congress. After 2014 the firms that employ more than 75 percent of their workers in the U.S. on temporary visas clearly will not be granted new H-1B visas, and along with that by 2016 that threshold will be brought down to 50 percent.

      This particular bill does not precisely target Indian outsourcing firms, but foreign employees typically make up 50 to 75 percent of these firms’ staff in the United States, the legislation will definitely limit their practice of hiring.

      The mentioned bill presents another significant issue for Indian companies: foreign workers on temporary visas would not be permitted to work on outplacements.

      The Indian IT industry is looking for what happens next. Like many other companies, India is watching the developments of the proposed immigration legislation to determine how it would influence our business.

      It said that the provisions of the bill may adversely affect on American businesses that outsource their work to Indian centers. At the same time Indian information technology industry has been an excellent supporter as well as benefactor of mighty trade relations between India and the Unites States. By considering this fact it makes bad effect between these two nations in terms of outsourcing business.

      With the Indian IT industry is carrying considerable clout in New Delhi, the problem clearly threatens to complicate trade relations between India and the United States.

      If this particular bill is passed with the current specifications then Indian government will consider whatever options they have to effectively react to these protectionist measures. But let us hope for the best that will protect India’s Outsourcing dominance.


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