Bills in Congress: more bad news for Indian tech companies?
On January 31, 2017, a bill introduced before the US Congress aimed at tightening H-1B visa regulations, had led to Indian IT stocks plummeting. However, it seems the there might be more rough weather in store for the Indian IT industry. Two new legislation have been introduced before Congress pertaining to outsourcing and visa reform that could significantly impact IT sector's future prospects.
H-1B visa salary doubles
US House of Representatives introduced a legislation on January 31, 2017 doubling current minimum H-1B visa salary from $60,000, to $130,000. This led to much concern among Indian IT sector biggies which apply for thousands of H-1B visas annually.
Revamp of H-1B and L-1 visa
Proponents of visa reform, Senators Chuck Grassley and Dick Durbin have reintroduced a 2007 'H-1B and L-1 Visa Reform Bill' in US Congress on January 20. The bill calls for a revamp of 'Skilled Non-immigrant Visa Programs' which Senators believe is a key component to "fixing our broken immigration system." Senators say legislation will ensure students educated in US receive preference for H-1B visas.
Prioritizing American workers
Senator Grassley said that the visa reform bill would "prioritize American workers and restore fairness" in visa programmes. He added that, "Congress created these programmes to complement America's high-skilled workforce, not replace it."
"End Outsourcing Act" introduced in Congress
Three Senate democrats, Joe Donnelly, Senator Sherrod Brown and Senator Kirsten Gillibrand introduced the "End Outsourcing Act" in the US Congress on January 30, 2017. The legislation essentially proposes that companies which outsource jobs are not in receipt of subsidy from US taxpayers. Further, the legislation provides that such companies should also not be permitted to do business with the US government.
Encouraging American businesses to employ locals
With regard to "End Outsourcing Act", Senator Brown said in a statement: "We should encourage businesses to invest here and make sure tax-payer funded contracts are awarded to companies that employ American workers."
