New Immigration Curbs Likely to Hit India's Giant Tech FirmsTop Stories

July 24, 2018 09:39
New Immigration Curbs Likely to Hit India's Giant Tech Firms

(Image source from: Mashable India)

According to one of India's major tech companies, the new-fangled curbs on immigration around the world could hit its incomes and proceeds.

Infosys, India's second-largest subcontracting firm, said tighter limits on overseas employees in some of its major markets pose a foremost peril to its commercial.

A huge number of the company's workers depend on visas to work on projects for customers in the United States, Europe, and Australia.

"An increase in anti-outsourcing sentiments in certain countries in which we operate, including the United States, United Kingdom, European Union and Australia have led and may in the future lead to the enactment of restrictive legislation," the company said in a filing with the Securities and Exchange Commission last week.

That law-making could make it tougher for Infosys to triumph clients and direct employees to those countries, which "could hamper our growth or cause our revenues to decline and impact profitability," it added.

Infosys is a significant player in India's subcontracting industry that hires over 200,000 persons universally, which makes over $140 billion in revenue and accounts for nearly 10 percent of the country's gross domestic product.

It is too one of the topmost receivers of H-1B visas to the United States, a program used profoundly by Indian companies to direct tech workers to the U.S. clients. More than 70 percent of H-1B visas have conventionally left to Indians.

Related content: New Rule makes it Effortless to Deny H-1B Visas

Nonetheless, President Donald Trump has cracked down on the program. His administration has accused firms like Infosys of inundating the United States with inexpensive overseas labor.

Additional giant Indian tech firms have likewise been affected by the U.S. policy variations. Earlier this year Wipro cautioned that Trump was a peril to its commercial, while the industry's chief player - Tata Consultancy Services - has been cutting back on H-1B visas.

The U.S. Citizenship and Immigration Services (USCIS) updated its plan earlier this month to make it laid-back to reject visa applications out-and-out deprived of giving applicants the chance to produce more documentation.

By Sowmya Sangam

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