In a recent development, the U.S. Department of Homeland Security (DHS) and the U.S. Citizenship and Immigration Services (USCIS) have unveiled proposed changes to the H-1B visa program. These changes are set to have a significant impact on India’s $245 billion IT services industry, which has long relied on the H-1B visa as a crucial component of its workforce strategy.
The proposed rule, published in a press release on October 20, aims to streamline eligibility requirements, enhance program efficiency, and provide more benefits and flexibility to both employers and foreign workers. One of the most notable changes in this proposed rule is the stringent measures to prevent misuse of the H-1B visa lottery system, a development that has significant implications for India’s IT services industry.
Currently, the H-1B visa lottery system allows individuals to file multiple applications through various employers or consultants, leading to the submission of duplicate petitions. However, the proposed changes intend to put an end to this practice by allowing only one application per person. This will not only prevent duplicate petitions but also increase the overall fairness of the system.
Presidential aspirant Vivek Ramaswamy from the Republican Party has been a vocal critic of the H-1B visa lottery system, labeling it as “senseless” and equating it to a form of indentured servitude. Ramaswamy advocates for a meritocratic approach to awarding H-1B visas and tying them to “civic commitments” to the United States. This reflects the ongoing political debate surrounding the H-1B program, as it continues to be a topic of contention in American politics. Check out our previous blog post which goes into Ramaswamy’s stance in detail here.
The H-1B program is pivotal for U.S. employers, as it allows them to hire foreign workers with highly specialized knowledge and bachelor’s degrees or higher in specific fields. Tech giants like Amazon, Ernst & Young, Google, Amazon Web Services, Intel, and Apple have been among the top sponsors of H-1B visas. Additionally, Indian IT companies, including Tata Consultancy Services and Infosys, have consistently ranked among the top sponsors.
U.S. Secretary of Homeland Security Alejandro N. Mayorkas expressed the DHS’s commitment to attracting global talent, reducing bureaucratic hurdles for employers, and preventing fraud and abuse within the immigration system through these proposed changes.
The key change in the proposed rule is the alteration of the H-1B registration selection process to reduce misuse and fraud. Currently, the chances of selection increase with the number of registrations submitted for an individual. The proposed rule seeks to prevent this by allowing each individual to be entered into the selection process only once, regardless of the number of registrations submitted for them.
Peter Bendor-Samuel, CEO of Everest Group, believes these changes aim to eliminate practices seen as abusive and make the system more equitable and efficient. The changes will prevent smaller firms from exploiting existing loopholes and create a fairer process for all applicants.
For major Indian IT services companies that have adhered to the rules and the spirit of the H-1B program, these changes should result in more available visas and a more predictable process. It will also provide applicants with the freedom to choose from legitimate job offers, as each registrant will have the ability to file an H-1B petition on their behalf.
The proposed rule encompasses several important provisions, including streamlining processes, improving efficiency by deferring to prior determinations, extending benefits and flexibilities for certain entities, and discouraging gaming of the system by prohibiting related entities from submitting multiple registrations for the same beneficiary.
Furthermore, the proposed rule introduces new eligibility requirements for rising entrepreneurs, which may open up new opportunities for Indian founders seeking to qualify for the H-1B visa.
The changes in the H-1B visa program come at a time when the tech services industry is undergoing a significant transformation with the advent of AI and generative AI. Companies are moving away from outsourcing large volumes of code to offshore centers and are focusing more on consulting capabilities, particularly in markets like the United States, Europe, Britain, Australia, and Japan.
Despite these changes, Indian tech services companies continue to hire local talent in the U.S., engage in offshore work, and participate in transformative digital projects. The 2024 H-1B lottery is expected to be based on the revised guidelines, marking a shift in the landscape of global IT services and immigration policy.
In conclusion, the proposed changes to the H-1B visa program are poised to bring about a more equitable and efficient system, impacting both U.S. employers and the Indian IT services industry. The outcome of these changes will be closely watched by stakeholders on both sides, as it shapes the future of global talent mobility and the tech industry’s evolving landscape.