On April 23, Senators Chuck Grassley and Dick Durbin reintroduced the H-1B and L-1 Visa Fraud & Abuse Prevention Act of 2009, which puts new restrictions on the widely used H-1B and L-1 visa programs that respectively let skilled foreign workers and foreign employees of American corporations work in the U.S. US Senators Grassley and Durbin have proposed that firms should not be allowed to hire employees under H-1B and L-1 visas if more than half their workforce already holds these visas.. This is affecting big Indian outsourcing firms like Wipro and Infosys.
These companies can no more bring people from india on H1-b or L1 visas and they need to depend on local US hires.
Rediff did a interview with with Wipro’s chairman Azim Premzi who reflected on Grassley-Durbin bill in US senate on H1-B visas. His concerns are loud about the proposed bill.
Here are some excerpts from Rediff.
Talent shortage in US will further widen –
In my opinion it’s a very drastic initiative that these two senators are trying to get through the senate. It will choke the United States of talent coming in. You will not be able to substitute the absence of this talent with local hires, because it’s not easily available.
Protectionism and Global economy –
Also, you’ll generate a trade war with countries such as India. It’s a freedom-of-trade issue. It’s precisely what President Obama said in the G20 meeting: The United States will not get into a spate of protectionism.
Impact on low-cost countries – Philippines, Vietnam, China
Please don’t underestimate its impact. Every low-cost country today is putting bets on IT: Philippines, Vietnam, China. They’re all there. Eastern Europe is there. Global trade in IT is as vital as global trade in manufacturing. If anything, it’s more vital because the economies of all countries are getting more and more the dominance of services, versus manufacturing and agriculture