'Marginal impact on Indian IT firms': NASSCOM on H-1B fee
What's the story
The National Association of Software and Service Companies (NASSCOM) has said that the recent decision by the US government to impose a one-time fee of $100,000 on H-1B visas will have a marginal impact on Indian IT firms. The industry body noted that Indian companies operating in the US have reduced their dependence on these visas over the years.
Visa dependency
Visa issuance trends for top Indian firms
NASSCOM highlighted that the number of H-1B visas issued to top Indian and India-centric companies has declined from 14,792 in 2015 to 10,162 in 2024. The industry body also pointed out that H-1B workers for the top 10 Indian companies account for less than 1% of their entire employee base. This trend indicates a decreasing reliance on these work permits by major players in the sector.
Adaptation period
Fee clarification eases concerns
NASSCOM also noted that since the new fee will be applicable from 2026, companies have enough time to scale up their skilling programs in the US and increase local hiring. The industry body said that the clarification on higher fees for H-1B visa applications being applicable only to new applications has reduced uncertainty. This means current visa holders won't be affected by this measure, easing concerns about business continuity.
Skill bridging
H-1B visas vital for bridging skill gaps
NASSCOM emphasized that while H-1B visas represent a small portion of the US workforce, they continue to play an important role in bridging skill gaps. The industry body also noted that salaries for H-1B workers are at par with local hires. This highlights the significance of these work permits in maintaining a balanced and skilled workforce within the American tech industry.