Will Indian IT companies be forced to exit H-1B visa program? Steep fee hike to make significant dent in pockets
Will Indian IT Companies Be Forced to Exit H-1B Visa Program? Steep Fee Hike to Make Significant Dent in Pockets
The recent hike in H-1B visa fees has sparked a wave
of concern among industry representatives and immigration experts, with many
warning that it could significantly challenge Indian IT service providers and
strain their finances. The increased costs could potentially force these
companies to reconsider their participation in the H-1B visa program, which has
been a cornerstone of their operations in the United States.
The Dependence on H-1B Visas
Indian IT companies heavily rely on H-1B visas to
bring thousands of highly skilled professionals to the US, filling specialty
positions that are in high demand but short supply. This dependency is
underscored by the fact that these professionals play a crucial role in
maintaining the competitiveness and operational efficiency of these companies
within the US market.
Substantial
Fee Increases
In April, the United States Citizenship and
Immigration Services (USCIS) implemented significant fee hikes for various
immigration processes. Notably, the H-1B visa registration fee surged by an
astounding 2050%, jumping from $10 to $215. Additionally, the application fee
saw a 70% increase, rising from $460 to $780. A new $600 asylum fee was also
introduced for filing H-1B and other petitions, which many experts argue is unrelated
to non-immigrant work visas like the H-1B.
"The drastic percentage increase and added asylum
fee all at once makes things difficult," remarked Shivendra Singh, vice
president of global trade and development at Nasscom, an industry association.
Financial
Implications for Employers
An analysis by the National Foundation for American
Policy estimates that these visa fee hikes could result in employers spending
over $33,000 in legal and government fees for each H-1B visa petition filed for
initial employment or employment extension. This substantial financial burden
raises questions about the sustainability of these costs for Indian IT
companies.
Potential
Withdrawal from the Visa Process
Jonathan Wasden, managing attorney at immigration
litigation firm Wasden Law, has expressed concerns that the new rules might
force Indian IT companies to withdraw from the visa process altogether. Unlike
tech giants like Apple and Google, or banking institutions that may only file
one H-1B petition every three years, Indian IT firms are likely to incur
significantly higher costs due to the need to file petitions more frequently.
Wasden believes this is a deliberate attempt by USCIS
to eliminate Indian IT companies from the H-1B program. "It is no secret
to anyone who practices employment-based business immigration that USCIS has
been trying for decades to eliminate Indian IT companies from the H-1B program.
This is merely the latest tactic to achieve this goal," Wasden told ET.
"They are trying to make the process so expensive for companies doing
third-party placement that they will go out of business," he added.
Impact
on Indian IT Companies
Nasscom has also voiced concerns about the impact of
the fee hikes on their member companies. Shivendra Singh noted that the increase
in filing fees comes at a time when there is a significant demand-supply gap in
skills availability. He warned that any measure that complicates and raises the
cost of addressing this gap could have a substantial impact on the ease of
doing business and adversely affect the competitiveness of the US economy.
Moreover, Singh pointed out that the proposed
modernization rule provisions, which aim to narrow the criteria for 'specialty
occupation' and H-1B employees staffed at third parties, could have serious
consequences if implemented in the future.
Future
Outlook
While some experts believe that the fee hikes will
lead to a decrease in the use of H-1B visas over time, others suggest that
companies will continue to bear the costs to secure the skills they desperately
need. Cyrus Mehta, managing partner at immigration law firm Cyrus D Mehta &
Partners PLLC, noted that Indian heritage companies have started to absorb the
fee increase, viewing it as a cost of doing business in the US.
However, Mehta also cautioned that the fee increase
could become a burden, particularly for India-born workers caught up in green
card backlogs, as H-1B extensions will need to be filed repeatedly on their
behalf.
The steep hike in H-1B visa fees presents a significant challenge for Indian IT companies, potentially forcing them to reassess their reliance on the program. While some firms may absorb the costs to maintain their competitive edge, the increased financial burden could ultimately reshape the landscape of the IT services industry in the US. As the situation unfolds, it will be crucial for companies to navigate these changes strategically, balancing cost management with the need to secure to
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