H-1b visa fees: The US government has made it clear that the fee of $ 1,00,000 (about 88 lakh rupees) proposed for H-1B visa will be applicable only to the new application. Also, it is not an annual, but only the fees to be implemented once. With this, experts believe that the impact on India’s IT companies may be limited. Because visa renewal, re-entry and existing Vizholders will be free from this fee.
Earlier, it was worrying that margins and other business parameters of Indian IT companies would have a very negative impact. However, now the analyst says that the Indian companies are prone to 7 percent pressure on the margin according to the H-1B visas that are going on.
What is expert’s opinion
Parikh Jain, founder of EIIRTREND, says that the new fees will not be applicable to existing employees or renewal. This means that companies will not suffer any huge loss. Apart from this, adopting generative artificial intelligence (Gen AI) has also reduced the number of employees working on a project.
Jain said, ‘Tech companies can also pay a one -time fee of $ 100,000. It is not a big problem. However, he indicated a challenge for those students for whom the opportunities to get jobs in America may now be less.
Difficult for new employees
Piyush Pandey of Centerum Brokerage also has more or less the same opinion. He says that this fee will mainly affect employees going to America in the near future. For example, the employee going next month will have to pay more fees. This can affect the margin of 50-100 basis points, but more clarity is coming.
Namrata Darshan, Chief Business leader of ISG’s India Research, said, “This fee is not going to change an existing business model or operating model significantly. But, if someone had to hire in future, then all this local will have to be done.
Reduction in dependence on h-1B
Data also suggests that new fees will have a limited impact on IT companies. The top of the top Indian IT firms shows the H-1B allotment analysis that Surthala is changing.
Tata Consultancy Services (TCS), Infosys and Wipro have seen a significant decline in their visa allocation since 2022: TCS about 45 percent, Infosys over 71 percent and Wipro is about 33 percent. These firms said that now their dependence on H-1B visa in deploying employees in North America is less than 20 to 50 percent.
This shows that companies are not completely leaving the H-1B visa program. Rather, they are making strategic changes. The possibility of widespread crisis due to one -time fee is very low.
How much will the impact on the industry?
UBS Global Research is that if this fee applies only to new applicants, then companies like Cognizant may have a 100–150 basis point on the operating margin. Because their dependence on H-1B is high. At the same time, Accenture will have the lowest impact.
Sandeep Aggarwal of Sowilo Investment Managers told CNBC-TV18 that the top five Indian IT firms produce a total of $ 80 billion revenue. They can suffer $ 1 billion annually from new visa rules. This can put up to 7 percent pressure on the margin. Nevertheless, these figures are smaller than the fear of that earlier that new fees will be charged every year and will apply to renewal. The damage in that situation could have been quite terrible.
How strong is the legal basis?
Despite the clarity of the White House, there are questions about the validity and durability of the move. CEO Phil First of HFS Research said that the ‘Aadhaar of the new policy is quite weak’. He says, ‘USCIS has to fix the fee, nor through executive order. I hope that there will be litigation and prohibition before September 21. Without the support of the Congress, sustainableness is low.
However, Phil said that the long-term story is that this policy will push the IT industry to rapid automation, platformized services and low dependence on H-1B.
Offsoring will get a boost
The US situation Kotchen & LOLP’s Daniel Lo said that the proposed fee could change the method of hiring. He said, ‘$ 100,000 fee will give clear indication to companies not to bring such H-1B employees to the US, whose work can be offered. This will definitely be offered some posts.
Also, American companies would like to bear the burden of fees for the same employees who will be the most efficient and experienced. It will have an impact on mid -term Indian IT firms.
Opportunities for India
This change for India can open the doors of new opportunity. CEO Guruprasad Srinivasan of Qusses Corp said that this American policy could become a ‘decisive moment for India’. Currently, about 71 percent of the approved H-1B visa application are Indians. It is known to what extent Indian talent depends on America.
Srinivasan said, ‘As on-site roles in America become expensive, more work will be shifted to India. This will increase opportunities and skilled professionals will get a chance to make a career at home. This will probably turn the brain drain of decades.
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