American tech giants banking on H-1B visas like never before, while their Indian counterparts are staying away
In the last eight years, major US tech companies such as Google, Microsoft, Amazon, Apple, and Meta have significantly increased their reliance on H-1B visa holders, while India's top IT firms have reduced their dependence on these visas, accordin...
By ET Online |
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Google, Microsoft, Amazon, Apple and Meta are among US technology giants hiring more H-1B visa holding employees in the last eight years even as Indian IT services firms cut their reliance, as per an ET analysis.
India’s top seven IT services companies including TCS, Wipro, Infosys, HCL have brought down their dependency on H-1B employees by 56% in the last eight years. In the same period, use of the US’s premier work visa soared by 189% at Amazon, Google, Meta, Microsoft and Apple combined, analysis of H-1B beneficiary approval data from US Citizenship and Immigration Services showed.
Amazon experienced the largest growth at 478%, followed by Meta Platforms (formerly Facebook) with a 244% increase, Google at 137%, Apple at 94%, and Microsoft at 70%.
The companies did not respond to ET queries by press time on Thursday.
The shift likely stems from demand for specialised tech talent across business sectors, fueled by digital transformation, cloud computing, and AI developments, said Vic Goel, managing partner at US-based corporate immigration law firm Goel & Anderson, LLC. “US companies must rely on H-1B visas to fill roles with skills not easily sourced domestically, especially in emerging tech areas.”
Meanwhile, many Indian-origin IT firms have developed established operations in the US and are now actively recruiting American workers. These companies are shifting away from visa-reliant business models and are increasingly offering Green Card sponsorship to experienced tech professionals.
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However, the anti-immigration policies of newly elected US President Donald Trump could impact not only the issuance of new H-1B worker visas but also the renewals of existing visas, the employability of spouses on H4 visas, temporary intra-company transfers (L1), and categories for extraordinary talent, such as researchers under EB1.
When Aravind Srinivas, the Indian-origin founder of $9 billion AI startup Perplexity said he still hasn’t received his green card, it sparked a debate on the efforts in immigrating to the US. The scenario may worsen with Trump’s return to the Oval Office.
Immigration lawyers are preparing for a major revision of the Immigration and Nationality Act, with a particular focus on the highly sought-after H-1B work visa category. Some experts are even speculating that country-specific quotas could be introduced, potentially benefiting India based on its diplomatic ties with the US.
“Trump has shown a great willingness in the past to negotiate country-by-country and case-by-case policy decisions, and this represents a significant opportunity for individual Indian companies to enhance or defend their situations,” said Rusell A. Stamets, partner at Delhi-based business law firm Circle of Counsels.
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“Indian businesses with significant US ties should quickly grow capacity to understand and influence the US right now, rather than trying to undue harm that comes later. Companies that are proactive will benefit greatly,” said Stamets.
Irrespective of the degree of policy change, experts are reasonably sure that employers hunting for international high-skilled talent will see an increase in sponsorship and related expenses.
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“The hike in work visa fees and higher prevailing wages of sponsored guestworkers drives the original intent of the work visa program viz: Help US employers find talent not found locally,” said Rajiv Dabhadkar, founder, National Organization for Software and Technology Professionals.
“With close to 300,000 international students from India arriving in 2023 alone, the burden of American work visas is expected to be more severe. Restriction on STEM graduates' arrivals is therefore paramount.”
For example, during the Trump administration's first term, H-1B visa applications faced increased scrutiny, with the immigration department requesting additional evidence for 34% of applications. This could lead to family instability if spouses are unable to work. Additionally, L1 visa approvals dropped to 86%.
“Previous anti-immigration efforts of the Republican regime, such as introducing policies that increased prevailing wages for H-1B workers, were overturned after they met with legal backlash,” said Poorvi Chothani founder and managing partner of LawQuest, an immigration law firm headquartered in Florida. “We should not only brace ourselves to see more of this but be prepared for changes to the Immigration and Nationality Act, which will be feasible now that the Republicans virtually control Congress. In the meantime, it is likely to become more expensive and difficult to employ foreign workers under the H-1B program or otherwise.”
She explained that even existing H-1B holders could expect more instability both on a professional and personal front. “H-1B renewals without high wage jobs in much-coveted roles may become harder. Also, family instability would be a larger concern if H-4s, the spouses of H1Bs, are barred from seeking employment.”
According to tech industry body Nasscom, India has invested $1.1 billion towards strengthening the STEM (science, technology, engineering and math) pipeline in the US, which is working with over 130 colleges and universities, and has upskilled 255,000 employees. The industry has created and supported over 600,000 jobs in the US, directly and indirectly.
H-1B visa application process: A step by step guide
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To get an H-1B visa, you need a company to sponsor you. If you're already in the US on a student visa, ask your employer if they can sponsor your H-1B. Otherwise, consult an immigration lawyer about your options.
Your sponsor can be your current or a new employer, as long as they're willing to support your application.
To get an H-1B visa, you need a company to sponsor you. If you're already in the US on a student visa, ask your employer if they can sponsor your H-1B. Otherwise, consult an immigration lawyer about ..
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Every company who want to hire a foreign worker on an H-1B visa needs to first complete and submit a Labor Condition Application (LCA) to the US Department of Labor (DOL). This document is crucial and serves as a guarantee that the company will follow specific rules, such as paying the prevailing wage and not negatively impacting US worker opportunities.
However, before getting the LCA approved by the DOL, the company must go through certain mandatory steps. These steps involve providing details about the job, ensuring proper wage standards are met, and meeting legal requirements to protect the rights of both the foreign worker and US workforce.
Every company who want to hire a foreign worker on an H-1B visa needs to first complete and submit a Labor Condition Application (LCA) to the US Department of Labor (DOL). This document is crucial an..
Read More
To ensure H-1B visa workers aren't paid less than others doing similar jobs in the same area, the prevailing wage is used as a benchmark. This wage is confirmed by the state employment agency and should be met by the employer. If not, a wage determination is required.
There are three ways to find the prevailing wage: 1. National Prevailing Wage and Center (NPWC): This is the most reliable and recommended option - it offers "safe harbor status," meaning employers using the NPWC wage are less likely to face legal challenges related to underpaying workers.
2. Independent survey: An independent and credible source can conduct a wage survey to determine the prevailing wage.
3. Other legitimate sources: While possible, using other sources (besides the NPWC) is generally not advised due to potential legal risks.
To ensure H-1B visa workers aren't paid less than others doing similar jobs in the same area, the prevailing wage is used as a benchmark. This wage is confirmed by the state employment agency and sho..
Read More
Once the employer acquires the current prevailing wage, the next step involves submitting the Labor Condition Application (LCA) through the completion of Form ETA 9035, which is filed with the Department of Labor (DOL). This application must be electronically submitted using the Foreign Labor Application Gateway (FLAG) system.
The submission should not exceed a six-month timeframe from the commencement date of the employment period.
In cases where employers face physical disabilities or lack internet accessibility, an alternative option is available. They may seek permission from the Office of Foreign Labor Certification (OFLC) for special consideration to submit their ETA 9035 application by mail.
Once the employer acquires the current prevailing wage, the next step involves submitting the Labor Condition Application (LCA) through the completion of Form ETA 9035, which is filed with the Depart..
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After concluding the Labor Condition Application (LCA) process, the employer can move forward with the submission of the H-1B petition by completing Form I-129, officially known as the Petition for Nonimmigrant Worker. It is crucial for the employer to attach an employment letter containing precise details such as the position's duties, employment dates, comprehensive job description, offered salary, position requirements, and contact information.
Supporting documents for the foreign employee, including academic qualifications, training certificates, membership records, resume, and a letter of support, should be included.
The final stage in the H-1B visa application process involves monitoring the petition's status. This can be done by entering the receipt number into the USCIS website. As soon as USCIS processes and records your application, they will update the status on their system.
After concluding the Labor Condition Application (LCA) process, the employer can move forward with the submission of the H-1B petition by completing Form I-129, officially known as the Petition for N..
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After your I-129 is approved, you will receive Form I-797 Notice of Action and you are one step closer to completing the process. Based on weather you're in the Us or not at the time, your next steps will change.
After your I-129 is approved, you will receive Form I-797 Notice of Action and you are one step closer to completing the process. Based on weather you're in the Us or not at the time, your next steps..
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If you are currently in the United States, your immigration status will automatically shift to H-1B, and the USCIS will update your I-94 record to reflect this change. It's essential to refrain from engaging in any employment activities until your status has officially transitioned.
To obtain an H-1B visa stamp, the process involves submitting DS-160 and scheduling a visa stamping appointment within 90 days before your intended start of work in the US This option is applicable to individuals already holding a valid nonimmigrant status, such as O-1, J-1, or L-1 status.
Alternatively, if you are currently residing in the US, you can opt for consular processing. This route requires traveling back to your home country to get the visa stamped at the US embassy or consulate there. It's important to note that consular processing entails additional applications and documentation. Additionally, there is a chance of administrative processing, which may potentially cause delays in your employment commencement.
If you are currently in the United States, your immigration status will automatically shift to H-1B, and the USCIS will update your I-94 record to reflect this change. It's essential to refrain from ..
Read More
Applicants who submitted their application outside of the United States, will not only have to complete the DS-160 form but also schedule and attend an interview at a US embassy or consulate. Following the approval of the I-129 form, the next step is to submit a nonimmigrant visa application at a US embassy or consulate in one's home country.
This process requires specific documentation and a face-to-face interview at the embassy or consulate. Upon successful visa issuance post-interview, the individual becomes eligible to travel to the United States.
The granted visa serves as a valid travel document to enter the United States. However, approval to enter the country is still required upon reaching a port of entry. Additionally, each visa comes with an expiration date, necessitating entry into the US before this expiration. Upon arrival at the airport or border, permission from the US Customs and Border Protection (CBP) is required for admission to the United States as an H-1B visa holder.
Applicants who submitted their application outside of the United States, will not only have to complete the DS-160 form but also schedule and attend an interview at a US embassy or consulate. Followi..
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