In what may be called a rather important development, the Bengaluru based IT firm, Infosys, is reportedly increasing the pace of its employment of the US labor force, allegedly in an effort to lessen its reliance on the H-1B, L-1A and L-1B Visas. The well-known Indian IT biggie claims it wants to generate a rather stronger base closer to clients.
Allegedly, it appears that that Infosys is doing it because of the mounting problems in getting H-1B and L-1 Visas, and courtesy political pressure. For those not tuned in, certain politicians, like Donald Trump; for instance, have blamed the IT firms of India of replacing American labor force with cheap workers.
As per new information, for the 2016 fiscal year (FY2016), Infosys appointed 2,144 local employees across North and South America, even as it is the highest in these areas hitherto.
As of the end of 2014-15, the figure represented more than a quarter of the Infosys' personnel in these specific areas, and is considered the largest addition of local personnel by the IT Group in the North and South American regions.
US An Important Market for IT Firms from India
The US accounts for over 60% of the total IT exports from India, with Wipro, Infosys, & Tata Consultancy having a major presence throughout the US. As per some sources at Infosys, their employee base consists of American workers and also the holders of the employment-based Green Cards.
To a certain level, Infosys has been left with no options except to take on more US manpower as the temporary business visas, and this comprises the H-1B and L-1 class visas, become harder to get hold of even as the H-1B Visa allocation is hardly adequate to cater to the demand.
Under the L-1 Visa plan there is a high refusal rate for the petitions for Indians. The present presidential election movement has created more pressure on the Indian IT groups to enlist domestically since some politicians have made not-too-positive declarations related to the hiring of overseas labor force, allegedly with a view to draw votes from anti-immigration voters amongst the American community.
Nearly All Infosys Workers in US on Work Visas
Numbers for the FY2016 demonstrate that Infosys had a combined total of 23,594 workers based in the US, and the majority of whom had gained admission into the nation on the Business Visas. The company's yearly report affirmed that those on the Work Visas comprised 11,659 of its workers in the country on the H-1B Visas, and 1,364 on L-1B Visas.
For those who came in later, the H-1B Visa is basically a non-immigrant visa. It enables a worker to stay in the country for a time-frame of a maximum of six years, to do a job for a specific recruiter/firm. The L-1 category visas enable a worker to live in the nation for an utmost time of five years as an L-1B specialized knowledge employee, and a maximum of 7 years as either an L-1A manager or executive.
Infosys Boosted Appointing in Other Regions
The IT firm is also hiring rather forcefully throughout the Middle-East, Africa, Europe, etc. By the close of 2015-16, the firm had 21,403 workers on its pay rolls situated outside of India, even as it represents 11% of its total worker base. At the close of 2014-15, 9.95% of the company’s manpower were based outside of India.
Allegedly, Infosys is not the lone Indian IT group planning to increase the figure of the American personnel it engages as the majority of the Indian and offshore-centric IT services groups are more and more looking at signing-up local workers in the US. The third-biggest IT services exporter of India, Wipro, is one of them.
According to the CEO of Wipro, the firm is moving ahead with plans to sign-up more local workers in its different onsite spots, instead of moving the needed personnel all the way from India.