It seems doors are slowly and gradually closing in for Indian IT firms in the US. As per fresh data coming in, there has been a massive decline in approvals of H-1B visa, especially for Indian firms.
But, before you starting blaming President Trump for this mess, there is another reason which is causing this decline in work visas for India: AI and Cloud Computing.
43% Decline In H-1B For Indians!
US-based think tank The National Foundation for American Policy has reported that H-1B visa approvals for top 7 Indian IT firms have declines by 43%, between 2015-2017.
While 14,792 H-1B visas were issued to these top 7 IT firms in 2015, this number has went down to 8468 H-1B visas in 2017.
This decline means that in 2017, out of 160 million people employed in the US labour force, H-1B visa holders from India accounted for only 0.006%.
The report said,
“The data indicate the problem is not which companies are receiving H-1B visas, which some contend, but that the 85,000-annual limit is too low for an economy the size of the United States,”
Here is a breakdown of the major IT companies, when it comes to H-1B visa approvals:
- Tata Consultancy Services (TCS): Drop of 51% (received 2,312 H-1B visas in 2017 as against 4,674 in 2015)
- Infosys: Drop of 51% (received 1,218 visas in 2017, compared to 2,830 in 2015)
- Wipro: Received 1,210 H-1B visas in 2017 as against 3,079 in 2015
Larsen & Toubro, Mindtree, and others too suffered a massive decline in H-1B approvals.
What Is Triggering This Decline?
US policies related to non-immigrant workers is no doubt one of the biggest reasons. US-based tech companies are now getting more preference, when it comes to granting work visas, compared to Indian or any other country.
However, the rise of AI and Cloud Computing is also seen as one of the reasons for less H-1B visas.
The report observes that as Cloud based Software and SaaS requires less people to manage the tools, reportings, companies are now applying for less work visas now, compared to say 10 years ago.
We will keep you updated, as we receive more inputs on the ongoing H-1B visa crisis.