Proposed changes in H-1B visa laws: Thousands of Hyderabad techies may have to return

About 4 lakh software engineers work in 1,283 software firms in Hyderabad, and approximately 20,000 of them go to the US every year on H-1B visas. Every year 60,000 H-1B visas are issued of which approximately 54,000 visas are to techies. It is estimated that software engineers in the thousands will be forced to return home soon.

Industry captains are estimating that out of every 100 techies currently posted in the US, 95 will have to return if the new rule is imposed.

“The flow of IT workers to the US is going to come down to a trickle in the coming days,’’ says the director of a Hyderabad-based firm with 450 employees. “Most affected are techies who are there since five or six years and have purchased houses. They have to dispose of everything if they are recalled,’’ he said.

Ramesh Loganathan, former president of Hyderabad Software Enterprises Association, says that it may prove to be advantages in the long-term. “As an industry we are already on the path to providing high-value services and this will put more emphasis on such projects. The days of sending someone to US and billing the client for the time he spends there are gone. We are in the phase of doing turn-key, high value projects and already only the most premium guys are working there. In fact, the shift towards high-value services started with the 2008-09 recession when some of the companies had 25 per cent staff on the bench. Firms cannot be in the bodyshopping business anymore; if there is anyone then they have to recall their employees. The Bill is yet to be passed but I think it will not be with retrospective effect so only the H1B visas that will given next year will be affected,’’ he said.

While about 55 per cent revenue for Indian IT companies comes from the US, companies are already exploring South Africa, Australia, Canada, UK and some European countries for projects.