Software exporters scoff H1-B visa cut

BANGALORE: The software exports and services industry would have little or no impact on business with the US cutting down H1-B visas over 60 percent from a cap of 195,000. Software exporters feel that immediate impact would be nil or very minimal and predicting the future would depend on the economical stability.

Instead, the industry is lobbying along with Nasscom for a "professional services visa" under the WTO/ GATS regime, which will facilitate the movement of professionals. The objective is to try and evolve visas that are appropriate for the software industry, and for which there would be no need to put artificial limits. "The paperwork for the visa is tedious and hope this would overcome such processes," said Vivek Dayal, spokesman for software major, Mphasis.

"Lowering of cap on the H1B visas will have little immediate impact, as the visas already issued are valid for 3 years and are extendable by 3 more," said Laxman Badiga, Chief Executive, Talent Transformation and External Relations, Wipro Technologies. Companies like Wipro along with rivals Infosys, Satyam and Mphasis are some of the largest consumers of H1-B visas.

The industry is least concerned about H1-Bs, what with offshoring accounting for more than half of the total software and services business. "In recent times visits to the US are more business oriented rather than technical assistance as earlier," said Dayal. For this a L1 or a business visa is sufficient. So the cap on H1-B visa is fine unless a demand arises in the future.

The H1B program earlier had a visa ceiling of 65,000 per year. With the increased IT demand in the year 2000, this was increased to 1,15,000 and subsequently to 1,95,000 for a period of 3 years. This increased cap was slated to end on September 30,2003 and the H1B cap would revert to the original 65,000 per year from 1 October 2003.

Meanwhile, H1B usage statistics paint another picture. Despite a cap of 195,000 only 80,000 visas have reportedly been utilized. That the visa requirement is dependent on the economy is clearly displayed in this case. The Indian software industry has been forwarding pragmatic suggestions. It has proposed a middle-path by calling for a cap of 120,000-130,000 against the present year's 195,000. But 65,000 is certainly not favored.

Going by experience, however, there is no need for the the industry to sweat. The US government has shown keen business sense whenever required, or it wouldn't have allowed a hike in H1-Bs during the post-Y2K, dotcom boom.