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NEW DELHI: Indian IT companies are preparing to cushion the interaction of the US administration’s steep hike successful H-1B visa fees, with analysts saying the blow, portion sharp, is improbable to beryllium fatal for the sector. On September 19, President Donald Trump signed an enforcement bid raising the interest for caller H-1B applications to $100,000, a staggering leap from the existent $1,500. The determination is expected to compression firms that trust connected sending tech endowment to the US, though galore person already reduced their dependence connected specified visas.‘Unviable economics’ A study by Nuvama said astir Indian IT companies are improbable to wage the caller fee. With median H-1B salaries successful the $80,000–120,000 range, adding different $100,000 would marque these roles uneconomical. Instead, companies are expected to pivot. “We judge Indian IT companies shall mitigate this interaction by higher nearshoring/offshoring and/or hiring section talent,” the study noted.Shifting strategies Analysts expect aggregate workarounds:
- Nearshoring to Canada and Latin America to enactment adjacent to US clients.
- Hiring locally successful the US to trim visa dependence.
- Increased offshoring to India and different cost-effective markets.
- Renegotiating contracts to walk immoderate costs backmost to clients.
Short-term pain, semipermanent reset While near-term fiscal and operational unit is unavoidable, Nuvama predicts the assemblage volition yet sorb the shock. “Over the mean to agelong term, the concern is apt to stabilise arsenic the assemblage companies observe much ways to bash concern efficiently,” the study said. The enforcement order, however, signals a tougher situation up for Indian IT, which volition present request to rethink its staffing models adjacent much aggressively.
