United States President Trump’s proposed reforms to the H-1B visa program may finish up profiting Indian IT professionals in terms of higher salaries, the founder of a leading asset management company has said.
The fresh rules for the visas could raise labor costs for both technology companies & businesses using outsourcing services in the United States, told Ignatius Chithelen, founder and managing partner of Banyan Tree Capital Management in an op-ed at the Wharton website.”These extra costs are estimated to be about $2.6 billion a year. The assumption is that the visa holders will be paid $100,000 in annual wages, around the average at major companies based on online job postings, while the number of visas issued remains the same,” he told.
Chithelen told the new visa policy is assumed to be announced about November.
From following year, the visas could go to applicants with the highest wages & skills, and the number of H-1B visas assigned may also be reduced since the focus is to “hire Americans”, he told.
The large supply of technologists from India, eager to work in the United States, has kept technology wages in the United States from surging too high, particularly when demand rises clearly as in the current social media boom & during the Internet bubble of the late 1990s, Chithelen told.
“If starting in 2018, H-1B visas are issued to those with the highest wages and skills, Indian professionals could benefit. Indians graduating with advanced degrees in the US and highly skilled professionals in India applying for H-1B jobs should then be able to find jobs with higher wages and better working conditions,” he told.
According to a survey released by Harvey Nash Pulse, six in 10 US IT leaders with large development teams say Trump’s proposed changes to the H-1B program will make skilled IT talent more limited and increase the cost to hire experienced IT talent.
Almost two-thirds of firms with more than 50 developers told they believe the current H-1B visa program as it stands has helped businesses strongly access highly skilled IT talent, it stated.
Meanwhile, in an op-ed, Republican Congressman Dave Brat told H-1B visa program does not put America first.
“During a time of heightened political divides, this is an issue both Democrats and Republicans in Congress can agree needs to be addressed,” he penned in The Hill Newspaper.”Too often, companies capitalize on the loopholes in our immigration system to displace high-skilled American workers in search of cheap labor,” said Brat, who is one of the co-authors of a bill proposing changes to the H-1B visa program.
Trump has signed an executive order that seeks to make changes to an H-1B visa program that brings in highly skilled foreign workers.