Proposed H1 B Visa & its Impact on IT Outsourcing

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Proposed H1 B Visa and Its Impact On Outsourcing
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Contents

• Introduction
• The Impact
• The Way Ahead

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Introduction

• Recently a new bill regarding the new norms for
  H1-B Visa for migrants to the US has gained
  significant attention. Tougher eligibility
  standards, new minimum wage standards and other
  employer obligations are some of the key features
  of this newly introduced bill. The bill, in many
  ways limits the ability of many IT companies to
  place their resources in the US at client
  workplaces. The proposed bill has definitely led
  to a lot of conversations on the issue, on how
  the future will actually shape-up. The shortage
  of H1-B visas has already been a problem with
  Indian IT companies. The bill, filed by senators
  Bill Nelson and Jeff Sessions, targets to reduce
  the number of skilled-worker visas available each
  year by 15,000. The proposed bill is in
  continuation of the H-1B and L-1 Visa Reform Act
  of 2013. The previous bill included limits on the
  number of employees a company could deploy in the
  US.

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The Impact

• By cutting the number of visas available each
  year and requiring those visas be given to the
  highest-wage earners first, this bill directly
  targets outsourcing companies that rely on
  lower-wage foreign workers to replace equally
  qualified US. workers, senator Nelson, a
  Democrat from Florida.
• India and US have built a strategic partnership
  across sectors and recognize that free movement
  of global talent is a critical success factor for
  this partnership. Discriminatory or protectionist
  measures would adversely impact the India-US
  bilateral trade, Nasscom said
• Key impacts of the proposed regulation on the IT
  industry
• Higher H1-B Visa costs
• Higher minimum wages for resources moving to the
  US for work
• Significant drop in margins on outsourcing

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The Way Ahead

• In a scenario where the Visa norms are going to
  get stricter in the long run. There are many US
  clients who have increasingly adopted the remote
  hiring model. While the model helps in providing
  businesses with quality resources, it does not
  have any restrictions related to salary, employee
  benefits and Visa requirements. Hiring resources
  from specialist service providers who also
  provide the necessary infrastructure for the
  project, helps in saving on costs and improve
  productivity. Remote teams can be easily managed
  through online tools and their productivity can
  be tracked with ease.

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Choosing The Right Partner

• A business looking for expert remote developers
  must hire the services of an agency like
  ValueCoders. ValueCoders provides expert
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