How end of H1B visa lottery could affect Infosys, TCS, Cognizant
If Indian IT companies raise salary levels for on-site staff to $75,000 to try and get a higher share of the H1B quota, their margins can be impacted by 40-120 basis points, Nomura says. Photo: HT
US President Donald Trump signed an executive order last week to promote ‘Buy American’ and ‘Hire American’ policies. Among other measures, the order directed four government departments to ensure that H1B visas are awarded to the most-skilled or highest-paid applicants.
In a press briefing before the order was signed, an official in the Trump administration disapproved of the lottery system of visa allotments, adding that outsourcing companies such as Tata Consultancy Services Ltd, Cognizant Technology Solutions Corp. and Infosys Ltd corner the lion’s share of visas. Cognizant is a US firm that is considered an Indian one because most of its operations are in India and it was set up to leverage the India advantage that Indian IT services firms did.
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