Big Indian IT Firms Won’t Be Hurt by New H-1B Rules, Says Nasscom Head

As per the Business Standard report, Nasscom President Rajesh Nambiar says recent changes to the US H-1B visa process are not expected to significantly affect large Indian IT companies.  

These firms have already increased local hiring and adjusted their strategies to accommodate new regulations. 

Minimal Impact on Large Indian IT Firms 

Large Indian IT firms have been preparing for stricter H-1B rules for years. By reducing reliance on H-1B workers, they have mitigated potential disruptions.  

The recent changes, including a proposed $100,000 fee for new applications, are unlikely to alter their business plans significantly. 

Additionally, a key clarification that students on Optional Practical Training (OPT) extensions will not face the new fee has alleviated some concerns. The industry has been proactive in shifting towards local hiring and has sufficient time to adapt before the next visa cycle. 

Broader Industry Shifts and AI Focus 

Beyond immigration rules, the global tech industry is experiencing a shift driven by artificial intelligence (AI). Businesses are focusing on transforming existing employees to meet future needs, as AI-powered tools become central to operations. 

India's vast talent pool offers a competitive advantage. Stronger collaboration between the government, universities, and industry could position India as a global centre for AI-driven capabilities. 

Read More: LTIMindtree to Halt New H1-B Visa Application Filings: CEO Venu Lambu! 

Challenges for Startups and Legislative Efforts 

Startups, especially in AI, face more pressure due to stricter visa rules and competition for skilled workers in the US. Many are coping by hiring locally and building partnerships. 

Meanwhile, efforts in the US Congress aim to expand the H-1B quota. The HIRE Act proposes raising the annual cap from 65,000 to 1,30,000, addressing talent shortages and supporting US education. 

Conclusion 

While new H-1B rules present challenges, large Indian IT firms are well-prepared due to strategic shifts towards local hiring. The broader industry focus on AI and legislative efforts to expand the H-1B quota could further shape the landscape. 

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