USCIS to increase scrutiny of Indian IT firms, L-1 visa holders will be under the scanner

immigration reform bill

WASHINGTON, DC (TIP) – US is getting ready to crack down on the number of foreign workers brought into the country with L-1 visas over the course of this year, meaning that Indian IT companies with branches in the US will see a significant uptick in federal government scrutiny.

Indian companies already lead firms of any other nationality in the number of L-1A and L-1B petitions they filed in the US. Over the course of fiscal years 2002-2011, seven of the top 10 L-1 visa employers were either founded, headed, or based in India or by Indians – in fact, it wasn’t just any seven, it was the top seven. IBM India, Wipro, Infosys, Satyam, and HCL all combined for a staggering 66,119 L-1 visa petitions over that 10 year period.

As a whole, the top 10 petitioned for 70,227 L-1 visas. This means that companies with ties to India ended up accounting for a whopping 94% of total L-1 visa petitions during that time frame. TCS alone accounted for 25,908 petitions, or just under 37%. Cognizant, which is based in the US, founded by Kumar Mahadeva, and has its headquarters in Chennai, tallied 19,719 petitions, equaling about 28%.

India is also one of the largest beneficiaries of the H-1B short-term work visa program, which will open its 2017 application window on April 1. Industry insiders expect the already sizeable cap of 65,000 visas to be reached in a matter of just days. Over the past few months, the US Citizenship and Immigration Services (USCIS) has said that it will now investigate L-1 petitions and holders as much as it does for H-1Bs.

Speaking to the Economic Times, Murthy Law Firm founder Sheela Murthy said that the USCIS scrutiny will affect all companies and that the crackdown will severely curtail the number of Indian employees that corporations are able to send between the two nations. Couple this with the proposed fees of as much as $10,000 for each worker visa petition in the immigration reform bill, and the US is clearly trying to keep IT job hiring as domestic as possible.

IT companies hiring Indians and other foreign workers have already felt the effects of Uncle Sam breathing down their necks. Infosys paid $34 million in an out-of-court settlement with the Department of Justice over alleged abuse of the visa system in bringing workers into the country, while Oracle has also come under fire in recent weeks for allegedly paying foreign workers as much as $50,000-$60,000 less than American ones.

In total, the outsourcing industry is said to be worth as much as $108 billion per year, according to some estimates.

The immigration reform bill could significantly impact how visas to highly skilled workers are given out. The legislation has gotten new wind under its wings now that 2017 is underway, and President Barack Obama‘s State of the Union address Tuesday night may touch on the Commander-in-Chief’s resurgent desire to get the legislation passed this year.

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