Shabiha Nur Khatoon
At his swearing-in ceremony US President Donald Trump said the country would “follow two simple rules: buy American and hire American”. Indian outsourcing firms are already preparing for potential changes to visa rules, which could present a challenge because they send thousands of workers to the world’s most powerful democracy every year via the H-1B programme…
Trump has signed an executive order banning foreign nationals from seven predominantly Muslim countries to enter the US. For over a month or so there has been immense speculation and uninformed discussion on the changes supposedly being made to H1B visa rules. Most of the news circulating on news channels and other platforms is the clamping down on H1B visas.
Donald Trump has proposed to raise the minimum wage limits required for H1B visa. According to him, it would make obtaining H1B visas difficult and force larger companies to hire American citizens over immigrants.
The H1B visa is a non-immigrant visa that allows US companies to employ foreign workers in occupations that require theoretical or technical expertise in specialised fields. Technology companies depend on it to hire tens of thousands of employees each year.
American citizens and those legally in the US are pushed out for cheaper labour.
In one of his speeches President Trump has said foreign students come over to our colleges, learn everything there is to learn about and get the degree. “They want to stay in our country, but we don’t allow them to. We want that they should ship back to their own country to use all their knowledge there.”
Trump’s proposal on H-1B visas is surely bad news for Indian workers and students willing to pursue their dreams abroad. Sunday POST talks to a few aspirants and software professionals on whether Trump’s clampdown on H1B visas will crush their ambition.
Snehasis Sahoo, who is planning to pursue an MBA course in the US, says, “It’s very difficult for Indians workers in the US. One of Trump’s key motives behind the cancellation of H1B visa is to secure jobs for Americans in their own country and prevent immigrants from bagging them.”
“Imposition of restrictions would be a major impediment and would mean fewer international opportunities. So my goals have shifted drastically. I am looking at other countries where to pursue future studies like Canada and some of the European nations,” Anwesh says.
Pratyansh Acharya, an MBA aspirant says, “Everyone dreams of going to America to pursue higher studies, and so was I when I was preparing myself for the application procedure in October last year. But by January end, along with the application deadlines, Donald Trump’s executive orders started rolling out. The restrictions on H1B visas came as a gigantic blow to my aspirations.”
After Trump’s intentions became clear Pratyansh, without further delay, started consulting economists and non-economists both in India and the USA to gain a level of clarity on the issue.
During an interview with the University of Rochester and the AdCom representative, he came to comprehend the whole issue.
“Nothing is going to change overnight,” they assured him. “We have a lot of resources to ensure that our students do get the jobs that they dream of when they sign up for an MBA with us.”
After the assurance from the university authorities, Pratyansh heaved a sigh of relief. He started applying to colleges outside the USA, mainly in South East Asia.
“We have to wait and watch how Trump’s order unfolds and whether it affects aspirants. The universities have been doing their bit to attract international students. So, let’s hope all goes well and we are not affected by different executive orders that the President comes up with,” he quips.
An Indian software professional based in Mumbai, who wishes not to be named, confesses he is worried about Trump’s crackdown on immigration.
“My dream was to go to the US and work in a major company like Infosys. But now it seems it wouldn’t be possible any longer,” he says.
The aspiring techie had planned to head to the United States for further study next year after completing his Bachelor’s in engineering from Mumbai. He hoped the degree would help him land a great opportunity in one of India’s top information technology exporting firms such as Infosys, Tata Consultancy Services (TCS) or Wipro. But Trump’s pledge to prioritise jobs for Americans came as a blow.
The aspiring techie’s inspirations are scores of high-profile Indians including Google chief executive Sundar Pichai who after completing a Master’s degree in America landed a plum job in Silicon Valley.
Scores of aspirants are apprehensive about the cancellation of H1B visas. There aren’t enough people with the qualifications to fill all the jobs in the US. One of two things can happen: either the positions would remain vacant or companies would outsource the jobs. Neither prospect is beneficial for the US.
India’s IT sector has boomed in recent years with companies, especially in the developed world, subcontracting work to firms like TCS, taking advantage of the country’s skilled English-speaking workforce. The sector makes more than $60 billion alone from the American market, providing IT and engineering services to major US businesses.
The United States offers 85,000 H1B visas every year, most of which are snapped up by Indian outsourcers whose employees fill a skill gap in US engineering. Applications are vastly oversubscribed and are allocated via a lottery system. Industry experts say any clampdown would force Indian tech titans to radically rethink their business models.
The present US administration’s protectionist stance would not only affect software professionals but also students aspiring to make it big in the US. Educationists say students could face many hurdles:
DIRECT BLOW
Trump’s policy of stopping immigrants eating into American jobs would impact job openings in large IT companies like TCS, which do a lot of outsourcing jobs, thus impacting placements in India, because companies like TCS conduct placement drives in most colleges.
High end jobs, like those offered by Google India, and many others would, however, not be impacted, as these chase talent rather than vice versa.
H1B visa would become tighter for those working in low end IT companies to get on-site US exposure. This however, once again, would not be a case for high-end openings, as Trump has expressed his aim of attracting brains to the US.
However, many students eager to pursue higher education in the US, like Anwesh Dash, feel that there is a sunnier side too. “Depending upon the course chosen, the ‘Optional Practical Training’ period ranges between 12 months and 36 months, and a student can work in the US for up to three years. The salary cap of a minimum of $130,000 is also not a cause of concern as the legislation is yet to be finalised. This will give far more scope to the right candidates securing the H1B visa,” says Anwesh.
“I feel the new legislation needs to be reviewed very carefully and an aspirant needs to make an informed decision. The need for improving the domestic employment scenario will be paramount for the US. However, that should not deter us from striving towards our goals,” he says.