Indian IT needn't fear Immigration Bill: Nasscom

The new immigration Bill proposed by the US senators will double visa-application costs for domestic software firms like Tata Consultancy Services and Infosys.

The bill proposes to increase the H-1B visa fees to about $5,000 per application. A Gartner report stated that the proposal could become law in early 2014 if the Bill is passed by the US Senate. If it gets passed, it will disrupt business models of top software companies by forcing them to remove professionals on H-1B work permits from on-site client locations in the US.

The Gartner report further states research VP and invest analyst Sandra Notardonato saying, "Most, if not all, Indian IT service providers will be deemed visa-dependent. Albeit to varying degrees, their ability to deliver services will potentially be hindered by this new law. The key proposals that are disruptive to the IT companies are outplacement restrictions, increase in visa fees, numerical restriction that is imposed on visa applications and government-mandated salary increase based on a more condensed wage system".

However, it has been noted that the new Bill may not have any adverse effect on India's IT business, observed the IT trade body Nasscom. Som Mittal suggested that India is very strategic to the US in terms of revenue from taxes and social security from IT. Moreover, since there is a shortage of technical resources in the US, we should look at favorable aspects, as the Bill is expected to be more moderate and less discriminative.