Suspension on expedited H1B visa to affect IT firms: Nasscom

NEWDELHI: Industry body, the the National Association of Software and Services Companies (Nasscom), on Sunday said that US’ decision to temporarily suspend the expedited premium processing of H-1B visas will lead to process delays for Indian IT firms too.

However, the move will not be a “significant impediment” for the over $110-billion outsourcing industry, Nasscom added.

The US has announced that from April 3, it would temporarily suspend the ‘premium processing’ of H-1B visas, which allowed some companies to jump the queue.

The suspension came even as New Delhi pressed for a rational approach on the matter from a trade and business perspective.

By paying an additional premium of $1,225, companies could get an H-1B application processed within 15 days, whereas a standard process takes 3-6 months. The temporary suspension of the fast-track processing of the H-1B visas – widely used by the Indian IT industry – may last six months.

The decision was announced just hours after top Indian officials — foreign secretary S Jaishankar and commerce secretary Rita Teotia — held meetings with officials and lawmakers in the US to view the H1-B visa issue as a trade and services matter, and not an immigration one.

It also puts pressure on Indian IT companies, since any change in the visa regime is likely to result in higher operational costs and shortage of skilled workers for the industry. The US accounts for over 60% of Indian IT companies’ export revenues.

Nasscom said it will work with the US Embassy in India to ensure that movement of professionals is not affected.