The US action to suspend Indian IT majors from the green card programme won't adversely hit the profitability or H-1B talent pipeline, key sectoral players told NDTV Profit on Friday. While respecting the US for its right to act against alleged violations, the stakeholders noted that Indian firms should not be generically charged of abusing the immigration programme.
"It's not a zero-sum game. We must acknowledge that immigration and protecting jobs in the US are not a zero-sum game," Nasscom Chairperson Srikanth Velamakanni. He noted that the Indian tech industry is "extremely well-run" and has consistently played a vital role in creating jobs globally, particularly in the US, where immigration remains fundamental to economic growth.
Notably, the year-on-year statistics of job creation by Indian IT firms in the US wasn't available, but data from Nasscom shows these companies hired over 207,000 Americans with an average wage of $106,360 in 2021. Separately, a survey conducted by the Confederation of Indian Industries (CII) in 2023 showed 163 Indian companies created about 425,000 local jobs in the US.
While acknowledging that Washington has the sovereign right to defend its laws and act against violations, Velamakanni cautioned against a rush to judgment. He stressed that a mere allegation "should not automatically translate into an assumption of severe wrongdoing", noting that strict due process must be followed.
The comments come a day after the US Labor Department suspended Infosys, Tata Consultancy Services (TCS), Wipro, HCL Technologies, Cognizant and Capgemini from the country's Permanent Labor Certification (PERM) programme. The department cited multiple ongoing federal investigations for the action.
'Worrying Tone'
Former Zensar Technologies Vice Chairman Ganesh Natarajan echoed the sentiment on sovereignty, agreeing that immigration rules are a country's prerogative, but expressed concern over the rhetoric surrounding the suspensions.
"The tone of the communication is worrying," Natarajan told NDTV Profit. However, he robustly defended the sector's operational integrity, stating that most Indian companies are strictly compliant with international laws and conduct their affairs with extreme professionalism. He advised that the industry must remain watchful of how its biggest customers interpret the situation, as the US remains the most critical market for Indian tech.
Despite the headlines, both leaders indicated that the PERM suspension is not a fatal blow to the IT services model. Velamakanni clarified that the suspension from the PERM programme does not strip these companies of their ability to secure H-1B visas. He argued that the action does not alter the fundamental growth trajectory or profitability of the IT giants, pointing out that earlier structural changes, such as the massive $100,000 fee for H-1B visas, represent a much larger hurdle for the industry.
Looking beyond the immediate regulatory friction, Natarajan suggested the current climate should serve as a catalyst for a long-term strategic pivot. Rather than relying solely on the traditional services-provider model, he argued that India must transition over the next few years toward becoming a product-centric, AI-driven, and IT-creating powerhouse.
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