Indian tech companies invested over $2 billion in the US, paid $20 billion as taxes. Also, Indian workers in the US contribute more than $7 billion annually to the social security network which they don’t use.

~By MR Dua

Ever since Donald J Trump walked into the White House as America’s 45th US President nearly 100 days ago besieged by a plethora of doubts about his electoral success, he has engulfed himself head and shoulders with all kinds of controversies, national and international.

Right from day one, hardly has a day elapsed that he’s not sparked off a new conflict on domestic or global front. Ironically, within a week of President Trump’s entering the Oval Office, he kicked up a multi-pronged, high-voltage conflict with seven Muslim countries, banning the entry of their citizens into the United States.

Though this ban didn’t impact Indians in any manner, this diktat of Trump’s seemed to be prompted by his popular electoral promise, ‘Protect America and Americans’. This ban was termed outrageous and didn’t go well with the average American. Trump’s other campaign pledge was ‘to save American jobs, and stop foreign countries steal American jobs,’ and had vowed to ‘investigate all visa misuses that undermined jobs for the American workers,’ indicating that foreign workers, including Indians on H-1B visas, could face tough scrutiny by his administration.

Meanwhile, H-1B visa enables only those Indian workers enter the US who have top theoretical and technical STEM qualifications and skills and expertise in science, technical, engineering and mathematics. Until recently, under these stiff conditions, including paying steep fees, currently $1225 – about Rs 80,000. The US yearly H-1B visa intake in 2015 stood at 65,000 – nearly 70% of all visas available under this category. Nearly dozen Indian IT companies in the US, such as Wipro, Infosys, Tata Consultancy Services (TCS), etc., bag over 60%, are the biggest users of H-1B visa. Incidentally, this is a non-immigrant visa granted for long periods to work in the US. Indian companies manage technology systems for American IT giants. Finding visas granted to Indians too high, Trump had pledged tightening this flow, and at the same time criticized companies that ‘ship’ jobs to countries like India, China, Mexico, Brazil, etc. Moreover, nearly a dozen Indian tech firms accomplish less paid American companies’ complicated projects under H-1B visa to their utmost satisfaction.

Meanwhile, Senators Chuck Grassley and Dick Durbin, had complained to Trump that the Indian H-1B visa workers ‘displace American workers,’ and demanded strict enforcements and adequate modifications in wage requirements, and securing protection for American workers and also for visa holders. Besides, the wages paid to average H-1B visa workers ranged between $60,000 and $65,000 per annum — deemed much below the American standards, i.e., $100,000. There are nearly 3.1 million Indians in the US, including permanent residents and on Green Card. Of whom, 65,000 holding H-1B visa predominate Silicon Valley where tech giants like Google, and Facebook operate. And, in fact top-skilled brilliant Indians on high-paid executive jobs, such as Satya Nadella, Sundar Pichai, and many others, form the backbone of these US companies.

The alleged prevalent prejudice against Indians H-1B visa holders has recently actuated the Trump administration to revamp H-1B visa regulations, and suspend the inflow for some time. Generally, H-1B visa applications are invited in the first week of April, and are granted on computer-drawn lottery basis. It’s believed new H-1B rules would require only the best and the brightest with high-level skills will get preference for such visa. Also, lawmaker Darrell Issa wants US concerns pay a minimum $100,000 for H-1B visa holders.

Meanwhile, the Trump White House is sadly either unaware or overlooking the fact that H-1B visa is extremely beneficial both to the US and India, or is deliberately overlooking the untold benefits that accrue to the US. For, Indian IT concerns operating in the US create innumerable employment opportunities for the locals, and thereby add to the American economy.  It’s been estimated that Indian companies have generated nearly 600,000 technical, and supporting jobs for American workers. In addition, during 2011-2015, Indian tech concerns invested over $2 billion in the US, paid $20 billion as taxes. Also, Indian workers in the US contribute more than $7 billion annually to the (American) social security network from which they derive absolutely no benefits whatsoever.

Finally, as a young Indian-American member elected to the House of Representative from California’s Silicon Valley last year, Rohit Khanna (known as Ro Khanna), has underlined that the US should ‘remain open’ to immigrants who contribute to create jobs and help shape America’s economy. He is reported to have called for ‘common sense’ reforms in the H-1B visa regime, saying, “Let’s fix the system, end the abuses, but make sure we recognize the role of immigrants in creating jobs.”

Also, it’s perhaps the time that President Trump stood by his promise made to the Indian community when he courted the American Republican Hindu Coalition in New Jersey last year while campaigning for the White House. Trump said: “I’m a big fan of Hindus and a big fan of India – big, big, fan … if I am elected president, the Indian and the Hindu community will have a true friend in the White House. That I can guarantee you.” He added that if he becomes president, “India and the US would be best of friends and have a phenomenal future together… India is the world’s largest democracy, and is a natural ally of the US… I look forward to working with Prime Minister Modi, a pro-growth leader. India’s economy is growing 7% a year, and we’re not growing at all. We’ll grow again.” Mr. President, it’s time now to fulfill your promise.

PS: The maddening craze for H-1B visa has impelled New Delhi’s Hanuman mandir to hold special prayers (vishesh puja) for success in securing or renewal of the visa. Also, a movie depicting woes of H-1B and Green Card holders created furore in the US among anti-immigration lobby alleging film was funded to help import more foreign workers to ‘steal’ more American jobs.

With fears of an Executive Order hitting India’s Silicon Valley, insiders say the only way to survive the storm is to redeploy and recast

 ~By Imran Qureshi in Bengaluru

US President Donald Trump has left many Indians uneasy. News of him likely to sign an executive order aimed at H-1B visas, 70 percent of which are cornered by Indians, has unnerved many. It also led to stocks of India’s top IT companies such as Tata Consulting Services, Infosys and Wipro, plunging to 4 percent and leading to a loss of around Rs 33,000 crore in their market valuation.

However, in India’s Silicon Valley, a different picture emerges of the dire prospects of this presidential order. It brought back memories of the challenges faced by the IT industry during the last two decades and surmounting them. These include the Y2K crisis 18 years ago and the US economic crisis which led to multi-skilling of the Indian coder. Despite campaigns during US elections urging hiring of locals, India’s software power has become akin to China’s manufacturing power.

The presidential order, if it comes through, will raise the minimum salary cap for H-1B visas from the present $60,000 to $1,30,000. Insiders admit that the costs of the Indian IT sector will go up, impacting margins but this will also depend on the speed with which they can “reinvent’’ their outsourcing model.

There is no doubt that such an order would hit IT companies. A CEO of a top IT company said on condition of anonymity that raising the minimum salary cap would be difficult for any company. “It is physically not possible for any company to pay this kind of a salary. The current model of sending skilled professionals will not work. Companies would have to recruit locally.’’

V Balakrishnan, former CFO, Infosys, said: “Doubling the wages will have a huge impact on IT services. It can be managed by reducing onsite deployment. For instance, currently, Indian companies have 70 percent work offshore and 30 onsite. This will have to be brought down to a ratio of 80:20 or even 90:10. Strictly speaking, with the new digital way of doing business, we do not require so many people onsite. New technologies that are being deployed are not manpower intensive. They are innovation intensive. Models will get re-invented because everyone knew it was coming. The centre of gravity will move towards India.’’

Models will have to change to retain growth. Rostow Ravanan, CEO of Mindtree Consulting, said that the industry would have to prepare for slower growth. “The current model of sending Indians to the US will not work. Companies would have to recruit locally in the US.”

Kris Lakshmikanth, CEO of Head Hunters India, goes a step further to say that the very nature of engagement would change. “Companies will begin to send only those professionals who are very critical. They will hire more from temporary companies (where services are given for, say, a project) or individual contractors locally in the US. Given the technologies available, it will be more appropriate to deploy non-techies who can market and deal with the business of software.’’

Manish Sabharwal, chairman, Teamlease Services, said: “Over a period of time, about 10 percent of the headcount in the US would come down to five percent if the visa order is pushed through. But, the advantage is that Indian companies will develop new competencies as they have done earlier. It will force us to increase headcount in India and develop processes. The wind is at the back of the software industry. The current number of 3.7 million IT professionals will only grow to 7 million in the next five years. But it is not a job crisis from any perspective.’’

So can the US survive without Indian IT professionals? Sandeep Ladda, Leader-Technology and e-Commerce, PricewaterhouseCoopers (PwC), said: “There is a huge demand-supply at play.’’ But the challenge, he said, was how Indian companies deal with issues in the immediate future if the order goes through. “There may not be simple solutions to negotiating pricing, for instance. Or, there could be some delay in who needs to be replaced. They may not have the machinery to hire people, and of course, not at $1,30,000.’’

That is not all. Indian companies will have to “accelerate technological innovations and look at acquisitions in the US,’’ said Raja Lahiri, Partner at Mumbai-based consultancy, Grant Thornton India.

Of course, everyone agrees that Indian IT professionals already in the US will not be impacted. But, just in case that also happens, Sabharwal quotes his 12-year-old daughter, Noor, who said: “It is good Trump got elected. All the Indians who made America great will return to help build India.’’

Lead picture: Indians during an event in US. Photo: www.prweb.com