InvestorQ : How do you expect the H1-B visa freeze extension to impact TCS, Infosys, Wipro and HCL Tech?
Niti Shenoi made post

How do you expect the H1-B visa freeze extension to impact TCS, Infosys, Wipro and HCL Tech?

ishika Banerjee answered.
4 months ago

Donald Trump has extended the freeze on the sought-after H-1B visas by Indian IT professionals as well as other types of foreign work visas and green cards up to 31 March 2021. The idea is to protect American workers so that other countries are not able to displace American local labour by bringing in low cost workers from other nations.

This announcement was made by Trump just a few hours before the freeze was scheduled to expire on December 31. The extension till March 31 was done through a special presidential proclamation. Biden is not likely to tamper with these regulations. Restricting immigration has been one of the focus areas of the Trump administration.

Ironically, Joe Biden had promised to lift the suspension on H-1B visas, calling it cruel, it is not clear if he would really change a policy announcement that has been quite popular among local Americans. H1-B visa allows US companies to employ foreign workers in specialty occupations that require theoretical or technical expertise.

Most of the Indian IT companies like Infosys, TCS, Wipro, HCL Tech and Tech Mahindra depend on this channel to execute projects in the US. However, of late most IT companies have reduced their dependence on such immigration loopholes, expanded local recruiting in the US and have also laid greater emphasis on off-shoring to the extent possible.

The issue of local jobs become primordial with COVID likely to disrupt American livelihoods and joblessness to touch a high of 6.7%. That is why it is very likely that Biden may also continue this policy to avoid rubbing the local voters the wrong way in these trying times. The idea of the announcement was to prevent misuse of the H1-B visas.