IT stocks crash amid concerns over H-1B move

02 February, 2017, 00:38 | Author: Celia Hoffman

According to latest developments, the US House of Representatives, has already called for more than doubling the minimum salary of H-1B visa holders to $130,000 (approx Rs 89 lakhs) making it hard for firms to use the programme to replace American employees with foreign workers, including from India.

- It will eliminate the Master's Degree exemption for employers.

US President Donald Trump is expected to issue an executive order to restrict work visas, H1B and L1 issued to professionals working in the US for a short period of time, as part of a larger immigration reform.

The actual reason behind introducing this visa is to help American firms deal with labour shortages in rapidly growing jobs that require specialised skills, such as in software programming, research and engineering.

Foreign work visas were originally established to allow United States companies to recruit workers from overseas if there weren't any qualified local workers. Its business in the USA, where it provides engineering and other tech services to firms such as IBM, Microsoft and Citibank, is highly dependent on the H-1B visa.

Arguing that they face a shortage of skilled USA workers, technology companies including Microsoft and Apple say they need more H-1B visas, while critics say the programme is used as a source of low-priced labour.

The proposed order would force companies to try to hire Americans first, and to give priority in foreign recruiting to the highest-paid workers, according to a draft copy reviewed by Bloomberg.

Some experts believe that Friday's order may not affect Indian IT companies, as they have "elaborate pre-hiring process to verify their employees".

The bill proposes to raise the minimum salary of a "H-1B" visa holder to around $130,000 per annum from the present limit of $60,000 per year.

SC refuses to stay Tamil Nadu amendment permitting Jallikattu
The state's law was challenged by NGOs who said in the Supreme Court that only the centre has the power to amend the law. The court also allowed the Centre to withdraw its January 7, 2016, notification permitting Jallikattu.


Israel to vote on legalising wildcat outposts
David Friedman, Trump's choice for ambassador to Israel, has said that he looks forward to performing his service "from the U.S. The global community considers the settlements illegal even if they are approved by Israeli legislators.


Here's how the Chinese New Year will be celebrated in India!
May this New Year be as colourful and interesting as the decorations that you put up in your home to welcome the festive season. However, during Chinese New Year prices can surge up from 3,000 yuan ($436) to 10,000 yuan ($1,454) per day.


The change in business model will also depend on the existing working model of individual IT companies, which have been trying to increase local hiring in the US. Meanwhile, the IT Index plunged 4.4 per cent to 9,722 points, 3-month low. At the end of the day, Infosys closed down 2.01%, TCS shares fell by 4.47%, Tech Mahindra fell by 4.23%, and Wipro Ltd by 1.62%.

Speaking to Bloomberg, Gary Burtless, a senior fellow at Brookings Institute research labour markets has said that immigrant STEM workers have played a large role in job creation in the U.S. and building American companies.

According to ComputerWorld magazine, almost 86 per cent of H1-B visas for computer-related jobs and 46.5 per cent for engineering positions were given to Indians.

Is there a silver lining? It sets aside 20 percent of the annually allocated H-1B visas for small companies and startup employers (50 or fewer employers) to ensure small businesses have an opportunity to compete for high-skilled workers.

The H-1B visa bill removes the "per country" cap for employment-based immigrant visas. India has been largely silent on Trump administration's recent immigration ban barring foreign nationals from seven Muslim-dominated countries.

"India's interests and concerns have been conveyed both to the U.S. Administration and the U.S. Congress at senior levels", foreign ministry spokesman Vikas Swarup said Tuesday.

With this legislation being passed the effect on Indian IT stocks was immediate. "I have been contacted by numerous American workers at many companies who are now training their replacements".

"We continue to focus on localisation".

Recommended:

  • Manchester United knock out Hull City on Aggregate

    For a player who was at United to come back to Old Trafford is always a great feeling I'm sure and he'll relish the opportunity". I only saw two goals". "I saw [Paul] Pogba's goal and their [second] goal was a fantastic goal.

    Pope axes Knights of Malta chief

    Festing had cited the Knights' status as a sovereign entity in refusing to cooperate. It's the latest step in the months-long dispute between the Pope and Festing.
    A look at the immigrant relief program known as DACA

    A look at the immigrant relief program known as DACA

    Trump said in an interview with Time Magazine in December that he would "work something out" with the "Dreamers" in the program. But he, without detail, said, "I think they're [DREAMers] going to end up being very happy".
  • After Thousands Protest Immigration Ban, Federal Judge Grants Stay To Detainees

    After Thousands Protest Immigration Ban, Federal Judge Grants Stay To Detainees

    A federal judge has granted the American Civil Liberties Union request to temporarily stop detention of men at John F. Hameed Khalid Darweesh , an Iraqi who was detained overnight, worked as an interpreter for the U.S.
    Six people killed by Chile wildfires

    Six people killed by Chile wildfires

    The plane is being deployed in the Maule region, north of the destroyed town of Santa Olga, according to Deutsche Welle . Chile has appealed for global help to tackle fires are sweeping through central and southern regions.
    Boeing reveals Starliner spacesuit for commercial crew

    Boeing reveals Starliner spacesuit for commercial crew

    NASA astronaut Sunni Williams, one of the first Commercial Crew astronauts, tries on Boeing's flight suit . This suit is the Russian version of the EMU and is used for spacewalks.
  • Cuomo to propose amendment to protect Roe v

    Cuomo to propose amendment to protect Roe v

    Cuomo was then asked at the conference about the protests Saturday night at the airport railing against Trump's executive order. Both Governor Cuomo and Attorney General Schneiderman have released statements on the actions taken by President Trump.

    Russian FM announces postponement of Syria negotiations in Geneva

    Lavrentyey also said on Tuesday that Russia's intention was only to accelerate the peace process and not interfering with internal issues.
    WWE Needs a Women's Royal Rumble

    WWE Needs a Women's Royal Rumble

    Show says Braun is a legit badass and a monster but he's here to let Braun know that he's not the biggest fish in the tank. You could add extra episodes to RAW or Smackdown based around who the Undertaker is going to challenge at WrestleMania .
  • Diageo Returns to Irish Whiskey, Plans Dublin Distillery

    The drink will join Johnnie Walker, Diageo's flagship Scotch whisky, as well as more regional names like Buchanan's and Windsor. The new blend has already been matured in casks for more than five years.

    Trump ordering Joint Chiefs to plan ISIS destruction

    United States (U.S) President Donald Trump said at the swearing-in ceremony of retired Marine Corps Gen. Trump could "certainly use more military force".
    Hull's Snodgrass close to West Ham move, says Silva

    Hull's Snodgrass close to West Ham move, says Silva

    However, the Hammers got their man on Friday, with the Scottish global signing a three-and-a-half year deal with the Londoners. When he was available he tried to work and do his best, but for the last 12 days he hasn't worked with me.


Popular

Apple might stop supporting 32-bit apps in iOS 11
Apple is preparing to end support for 32-bit iOS apps, according to an error message discovered in the new iOS 10.3 beta. There are still a large number of 32-bit apps in the App Store that have not been updated for a long time.

Conte's comments on Ivanovic future make it clear
He is a legend of the career and if you are not playing a lot you an make decision to play for another team. And his performances for the Magpies appear to have caught Antonio Conte's eye.

Honda, GM announce U.S. fuel cell venture
The plant, which employs about 120, now makes the lithium-ion battery for GM products like the Chevrolet Volt and Malibu hybrid. The Clarity Fuel Cell offers an EPA-estimated range of 366 miles and fuel economy rating that is the equivalent of 68 mpg.

Rodrigo Duterte suspends Philippines' war on drugs
As of Monday, Dela Rosa said , instead of the war on drugs, the PNP will now focus on war on scalawag policemen. He also said a year ago he would be "happy to slaughter" three million drug addicts as part of his crime war.

Trump, Putin discuss Middle East during phone call
The announcement came Friday from Kremlin spokesman Dmitry Peskov , according to Russian news agencies. "If there's any country in the world that doesn't deserve sanctions relief, it's Russian Federation".

White Woman Who Accused Emmett Till of Flirting Finally Admits She Lied
The jurors in Till's case had no intention of convicting Bryant and Milam, two white men, for the vicious murder of a black child. She also claimed Till had wolf-whistled at her, but Tyson notes that might not have been intentional because the boy had a lisp.

New Map Shows Mostly Southern California Counties Remain In Extreme Drought
Drought conditions in the Southeast have also undergone a significant reduction thanks to another recent soaking in the last week. This week's report, the first since a freight train of storms rolled through the state, shows no areas of exceptional drought.

Tiger Woods set for Torrey Pines return
Hold on though - don't let that deter you, because he missed the cut as the defending champion after winning here in 2015. He seemed to have no physical problems when he played in the unofficial Hero World Challenge in the Bahamas last month.

Equatorial Guinea confirms hosting ousted Gambian leader Yahya Jammeh
Pensioner Ibrahima Gaye said: "He will be different in all aspects. we have been living under dictatorship for 22 years". A larger, more formal ceremony to welcome Barrow home will take place at a later date, spokesman Halifa Sallah said.

Johnson & Johnson Buys Actelion For $30 Billion
That will happen, pending shareholder approval, just prior to the close, which is expected to be in the second quarter of 2017. Niederer Kraft & Frey ; Wachtell, Lipton, Rosen & Katz ; and Slaughter & May are serving as legal advisors to Actelion .