American MPs, including TCS, know what action was taken on these 9 companies including US staff.

H1b visa fees row: American MPs have questioned Tata Consultancy Services (TCS), Cognizant and 8 other major companies to file thousands of H-1B visa applications after recently trimmed US employees. Charles Grassli, chairman of the US Parliament’s Senate Judiciary Committee and Richard Darbin, have also sought information from companies such as Amazon, Apple, Deloit, Google, JP Morgan Chase, Meta, Microsoft and Walmart, their recruitment methods, pay structure and inter-welfare between American employees and H-1B visa holders.

MPs raged to remove America staff

MPs said that their initiative took place at a time when the unemployment rate in the US technology sector is more than the overall unemployment rate. According to Federal Reserve data, recent American graduates with STEM degree are facing more unemployment than the general public. Significantly, Grassli and Durbin have been critics of H-1B visa program for a long time. He says that many companies use these visas to bring cheap workers from abroad instead of American workers.

These MPs also informed that they are re-introducing bipoleal laws to improve H-1B and L-1 visa programs. He argues that H-1B and L-1 Visa Reforms Act will help prevent fraud and misuse in the US immigration system, ensure safety of American workers and visa holders, and bring transparency in the recruitment process of foreign workers.

Direct impact on Indian IT companies

Indian IT companies like TCS, Infosys, Wipro, HCL and Cognizant work on a large number of projects in the US. H-1B visa is very important for these companies, because through them, Indian IT professionals go to America and work on client locations. If the US tightens visa rules or increases the minimum limit of salary, it will be expensive and difficult for Indian companies to send people there.

If according to the demand of American MPs, companies will have to pay equal or more salaries to H-1B visa holders, then the cost of Indian companies (COST) will increase. This can affect their margin and reduce the profitability of some projects.

Due to strict rules, Indian IT companies will emphasize the offshore delivery model (ie delivery of projects from India). This may increase new employment opportunities in India, but American clients may get less on -to -joint support.

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