H1-B Visa Alert: What the companies think - Final Part

In my previous blog I have mentioned how, It is not going to be an easy task for companies to overcome the difficulties that are being faced now owing to the new reforms to the US H1-B visa that has become the law. Many suggestions have said to have come up by the founders and co-founders that Indian companies must resort to taking up local hiring. We will continue from where we left as many companies are still in a limbo and devising strategies to come out the mess.

A report by Nasscom, for example, suggested that the industry must pay equal wages to both the US Nationals and Indians who are on H-1B visa. For example, in the year 2016 when a citizen was paid $95,000 a year, an H-1B visa holder was paid $87,000 with an additional $20,000 on h1b visa sponsorship and ticket costs for the individual and the entire family. US companies are keen on hiring more people from India because of talent shortage in the US and there are many job openings with a requirement of STEM skills which are not getting filled locally. IT is only due to talent shortage that is making the US companies hire from other places.

One of the major reasons of firms of Indian origin not hiring locally in the US is also cultural. Indians are willing to work for a late hour and they can be contacts over the phone and the internet always. But in the US the work culture is such that they do not answer any calls or emails regarding work in weekends or after their work hours. The IT service firms in India are quite known for working beyond the 9-hour shift and so the locals may find it difficult to adjust to working culture in the US.

The time zones that both works are different and difficult for both sides thus making it difficult for people contact their US counterparts during the Indian time zone. It might be early or before dawn or little later in the US when they are trying to make phone contacts and a time when no white American can take a call but an Indian would which renders coordination to be very difficult.

The h1b visa database is already full of nationals of their own country and these are issues that are not exclusive to Indian IT firms in the US but also to other global IT firms which prefer to bring their own set of nationals to work in the US. India is said to churn out enormous numbers of engineering graduates unlike the US where the college education costs are too much on the expensive side and however the fact is that most of the Indian graduates are not employable at all and need training which is what most of the firms like Wipro, TCS, Infosys in India do.

Indian companies have the expertise and ability to take the raw material and make something useful out of it. They have been doing this in India for long by training Indian graduates and they can do it on American soil too which is a no big challenge though costs may be incurred. The US administration is suggesting ways to benefit both the US as well as the Indian IT firms and it cannot dictate to the Indian firm through a law to hire people locally without mentioning the numbers to get hired. They must instead focus by giving incentives for real estate and help in setting up offices in the US with policies that will help both the US and India. Get latest job alerts on https://www.simplyopt.com/.

Since the costs will impact the bottom lines of Indian IT firms with a slew of issues ranging from shaving off the margins from a range of 5 to 10 percent of the cost and complexity increasing. Renegotiation of existing contracts will happen and reevaluation of business models will happen. Thus, keeping all these in mind US and India must tread carefully and wisely in future without any mishaps. 



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