Small, mid-sized IT firms shrug off impact of US visa fee hike on business
Indian technology firms could make the recruitment of Indian workers in the United States with a major march in US President Donald Trump’s H-1B visa fees, although a few ITS and software firms have fallen after the announcement, although the stock prices have fallen. More than a dozen small and medium -sized information technology (CT) and software companies said this week that the wage of 100,000 dollars in fresh business visas will not significantly affect operations.
On Tuesday, IT Services companies Sonata Software Ltd, Biralsoft Ltd, ZENAR TECHNOLOGY LTD and HAPPYEST MINDS Technologies Ltd with Data Analytics Player Latent View Analytics Ltd and Business Process Solutions Ltd, no effect on the works of Digitide Solutions Ltd, Trump He said it wouldn’t.
The country’s best five technology departments – Tata Consultancy Services Ltd, InfoS LTD, HCL Technologies Ltd, Wipro Ltd and Tech Mahindra Ltd – have not announced whether the order will affect their work so far.
Trump Order
On Friday, Trump signed a executive order for every new foreign workers within the scope of H-1B visa, which requires about $ 1,000 to pay $ 100,000 per year. The White House announced on Sunday that one -time fee will be applied to new applications, not to the current visa holders. H-1B visas allow high-skilled immigrants to work temporarily in the USA.
His statements on Tuesday contribute to eight medium and small IT CT service providers who had little effect than a wage increase before or without any impact. In total, 14 IT and software companies – almost five -fifth of BSE CT index components – now rejected concerns that the order would significantly affect operations.
Markets reacted to a visa wage increase with anxiety. The shares of 13 of these companies have dropped to 12% since the announcement of wage increase, reduced the BSE IT index by 3.3% and reduced the opposite Sensex 0.6% in the first two weeks of the week. Cyient Ltd increased 0.3% compared to sessions.
Sonata Software said that the use of H-1B in the company is not “important” and that the currently deployed employees and contractors were not affected. Bengaluru -based company, local recruitment and labor planning, visa compliance and global mobility investments will provide uninterrupted customer service, he added.
Chennai-based Latent View Analytics, 32 approved by US citizenship and immigration services, said that he applied for 135 new H-1B petition for this fiscal year. Digitide Solutions also said that he envisaged a significant impact on operations or financies and followed the situation. Digitide, which was listed after a deying of Quess Corp Ltd in June, earns more than three -fifth of its income from India.
The FY24 reported an revenue of $ 1.2 billion, $ 342 million and $ 95 million, respectively for Sonata software, Digitide Solutions and Latent View Analytics.
Analysts expect sharp wage increase to accelerate localization and reduce confidence in H-1B visas. Icıcı Securities analysts Ruchi Mukhija, Aditi Patil and Seema Nayak wrote in a note dated 21 September, “IT companies will further reduce dependence on the H-1B visa and increase localization. In the medium term, we believe that CT services companies should benefit from this movement,” he said.
