H-1B visa ban: Indian CIOs say there’s no need to panic

The tussle between the interests of the H-1B visa workforce and home-grown talent in the U.S. is not new. CIOs in India explain how the sector is looking at the development.

H-1B visa Statue of Liberty America

Is U.S. President Donald Trump’s H-1B visa entry suspension a sign the Indian IT/ITeS sector should worry?

Following the presidential proclamation that temporarily suspended entry to the U.S. for H-1B visa applicants till the end of the year, there has been a flurry of reactions from the tech community. Recently, a group of 174 Indians filed a lawsuit against the administration in the US District Court in the District of Columbia.

Read: What Trump’s H-1B visa order means for IT

Think globally, hire locally

The tussle between the H-1B visa workforce and job security for home-grown American talent is not new. While Indians account for nearly 70 percent of H-1B visas allotted every year, there is a gradual and conscious decrease in “visa-dependency” in the IT services sector. According to a CRISIL analysis, “The U.S. move will have only a marginal impact because it pertains to just new H-1B and L1 visas issued until December 2020. Applications for renewal of visas, which on average are 3-4x new H-1B requests, remain unaffected.” Indian IT firms have been gradually decreasing their dependence on H-1B visas over the past three years due to increasing denial rates – from about 6 percent in FY2016 to 39 percent in the first half of FY2020. 

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