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NRIPage | Articles | H-1B Visa Policy Reforms: Impact on Indian IT Giants and the Broader Sponsorship Landscape | Get Education & Training Articles. Empowering Lifelong Learning around the world - NRI Page
Indian IT services companies are likely to benefit from ongoing discussions about H-1B visa policy changes, despite holding a relatively small share of the overall visa sponsorships, according to Macquarie Research. The report emphasizes the challenges of hiring locally within the United States and underscores the crucial role H-1B visas play in addressing the shortage of technical talent.
Concerns Over a Flat Wage Proposal
Macquarie has raised concerns about the potential implementation of a uniform wage floor for H-1B visa holders, labeling such a proposal as impractical. Given the significant regional differences in the cost of living across the US, a flat wage could worsen economic disparities. The firm suggests that the wage floor should consider local conditions to avoid unintended consequences.
Instead, Macquarie recommends reworking the H-1B visa into a temporary, non-employer-specific work permit, akin to Norway's skilled work permit system. This approach would foster flexibility and competition while safeguarding worker rights.
An analysis of H-1B visa issuances for fiscal year 2024 (October 2023 to September 2024) reveals that over 61,000 companies collectively accounted for 79.6% of the visas. Amazon, the largest sponsor, accounted for just 2.7% of the total, with 3,871 visas. Key Indian IT firms, such as Tata Consultancy Services Ltd. (TCS) and HCL Technologies Ltd., sponsored 1.0% (1,452 visas) and 0.9% (1,266 visas), respectively.
