Wipro and others warn of H1-B visa cuts

Several leading IT companies have warned investors of a cutback in H1-Bs. In their US Securities and Exchange Commission filings, these IT companies, which includes Indian IT major Wipro, have alerted investors that it may become more difficult to obtain these visas in the future, reports a leading technology site. Infosys Technologies also repeated warnings made in earlier filings that it’s "reliance on work visas for a significant number of technology professionals makes us particularly vulnerable" to changes in visa laws.

Infosys said that almost 7,000 of its employees held H1-B visas at the end of September. In addition, Infosys said that 1,500 of its workers held L-1 visas. L-1 visas are used by multinational firms to transfer employees. A year earlier, 7,700 Infosys employees had either an L-1 or H1-B visa, the company said. Incidentally, several small US IT firms too have expressed concerns that change in visa laws could hurt them. 

 

Many companies are unsure if they will get adequate number of visas under President-elect Barack Obama. During the presidential campaign, Obama promised to "stop giving tax breaks to companies that ship jobs overseas" and to provide incentives that help companies keep jobs in the US. However, though Obama promised to stop tax breaks, he never linked the H1-B visa to this issue. And, since his election, Obama has not unveiled a detailed plan for H1-B visas. 

 

Recently, Obama picked Janet Napolitano as secretary of the Department of Homeland Security (DHS). The Arizona Governor Napolitano is said to be a strong advocate of increasing H1-B visas. In testimony, speeches and a letter sent to congressional leaders, Napolitano, a two-term governor, has left a clear trail of support for increasing the H1-B visa cap to address what she has argued is a shortage of skilled workers. The new DHS secretary is said to be among the 12 governors who had sent a letter in September 2007 to congressional leaders in both parties urging a hike visa cap.