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Disruptive Moves On H-1B Visa Detrimental For India, United States

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Any disruptive move on the visa front will be detrimental for both India and the US, with reports suggesting that Washington may be mulling new rules to prevent H-1B visa extensions, software body Nasscom has said.

Greyhound Research Chief Analyst, Founder and CEO Sanchit Vir Gogia said changes in the H-1B visa arrangement will add immense cost pressures on Indian IT companies.

“The average margin hit for an IT services provider will be in the range of 5-10 percent year-on-year, depending on the total base of employees currently on H-1B, the existing compensation and need for onsite in near-term,” he said.
He added that a hit beyond this threshold will force these firms to “either re-negotiate contracts with existing clients or else the street will act ruthlessly and these firms stand to lose potential ground on market capitalisation”.

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Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Knowledge Group, a Global Strategy & Transformation Research, Advisory & Consulting Firm. To read more about him, click here.

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