From India: New American Bill (Immigration Reform) Threatens Indian Outsourcing Companies

A new American immigration bill threatens the future of Indian outsourcing, Indian companies say, because it will limit the number of foreign workers they can bring to the United States.

Under the bill, which is being backed by executives from American technology firms, the total number of H-1B visas will increase to 110,000 from 65,000. However, the bill will limit the overall percentage of foreign workers that outsourcing companies like Wipro, Tata Consultancy Services or Infosys can have in the United States, and will require companies that have 30 to 50 percent of their workforce on temporary visas to pay $5,000 for every new foreign worker they hire.

After 2014, companies that employ more than 75 percent of their workers in the United States on temporary visas will not be granted new H-1B visas, and by 2016 that threshold will be brought down to 50 percent.

The bill does not specifically target Indian outsourcing companies, but because foreign workers typically make up 50 to 75 percent of these companies’ staff in the United States, the legislation will greatly limit their hiring practices. The bill also has provisions for visa fee of $10,000 for companies that have temporary foreign employees making up over 50 percent of its workforce in the United States, and it requires companies to follow strict guidelines when advertising jobs in the United States.

http://india.blogs.nytimes.com/2013/05/06/new-american-bill-threatens-indian-outsourcing-companies/

Interesting to see the Indian reaction to immigration reform bill that could be passed by the Senate committee this week.