Some uncertainties likely due to U.S. decision on H-1B visas: HYSEA head

The U.S. decision on the H-1B visa is indeed going to be a challenge for the companies and lead to some uncertainty as well as pressure on projects, Hyderabad Software Enterprises Association (HYSEA) president Prashanth Nandella said, adding that a clear picture will emerge soon.

“We have been huddling a little bit to understand the implications [since] some exclusions like projects of national interest are being talked out. Immediately, there’s [going] to be impact on new applications beginning October,” he told The Hindu. Apart from the new applications, another segment that is likely to feel the impact immediately are employees on H-1B visa who are outside of the U.S.

“Most companies have requested their employees to see if they can get back to the U.S. before the 21st [September]. We will have to see whether they are able to manage, accommodate, how they manage things and get back,” he said, adding even as the implications are being assessed, it is clear “there is going to be some uncertainty, some impacts on some projects.”

Over the last several years, IT services companies have been reducing their dependence on H-1B visa. “They still get H-1B, but emphasis is more local hiring. That has been a strategic push for the many years. Big American companies have been using this as a large channel for talent mobility… they will be impacted to some extent,” Mr. Nandella said.

Stating that there is bound to be pressure and necessitate reworking business plans to an extent without impacting projects, he described the visa issue as a “short-term pain that we have to deal with. It’s more pain for people as much as it is for companies. We will have to deal with that situation. HYSEA is in the process of getting data specific to Hyderabad and Telangana,” he said, adding the new visa fees are prohibitive.

On the course of action, he said given NASSCOM is the national-level body of IT firms HYSEA intends to be in touch with it, as had been the case in the past too for various initiatives, to engage with the government. The other body that actually can make a big difference is AMCHAM (American Chamber of Commerce). “We’ll engage with them to see what should be a strategy to tackle this issue. One is obviously mitigating the risk… there will be a little bit of redrawing [required] on what should be the future strategy. That’s something that we need to sit together and think,” Mr. Nandella said.