National Association of Software and Service Companies (NASSCOM) said, on Friday, that the hike in visa fee levied by the US Congress will have a negative impact on Indian software and services companies.
The statement came from NASSCOM after US Congress doubled a special visa fee on the popular H-1B and L-1 visas, raising it to USD 4,500 to fund a 9/11 healthcare act and biometric tracking system.
NASSCOM also said that America, which is the biggest market for IT industries, will find it difficult to get easy access to highly-skilled IT talent. The higher costs of hiring or contracting for IT services will also force more US companies to consider moving IT operations overseas, thereby reducing American jobs and tax revenues.
The impact is fairly high. But I guess the US has its own priorities. NASSCOM believes that the thing they are doing is very negative because there is still a shortage of skills, especially in STEM – science, technology, engineering and mathematics (in USA). We had raised the issue with various forums in USA (about consequences of a visa hike)BVR Mohan Reddy, Nasscom Chairman
Replying to a query on the impact on IT/ITES companies operating out of flood-ravaged Chennai, Reddy said:
Some working days were lost due to floods. There was one week of partial loss of work. But most of them are coming back to normalcy. Hope this is one-time impact and everything will come to normal, NASSCOM is not revising any number.
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