Misuse of H1B visa charges baseless: IT cos

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Misuse of H1B visa charges baseless: IT cos

Indian IT companies say the allegations of misuse of H1B visa are unfounded, CNBC-TV 18 reports.

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Indian IT companies say the allegations of misuse of H1B visa are unfounded, CNBC-TV 18 reports.

Letter from the US senators read, "Dear Mr Nilekani, We have been concerned about reported fraud and abuse of H1B visa programmes."

That is what a letter sent by two US senators to Infosys says. In that letter, the senators question the company's practice of sending senior officials to work in their US offices. They claim many Americans are losing out on jobs due to this.

Eight other IT giants like TCS , Wipro and Satyam have also received similar letters. But the companies claim the allegation is not justified.

NS Parthasarathy, Executive Vice President-Global Delivery, Mindtree Consulting , says, "Firstly, I think no Indian company is misusing H1 B visa that is available to them to genuinely conduct business. Secondly, I see this as a trade issue and not an immigration one." 

But, why has the H1B visa issue become controversial at this time?

Suhas Nerurkar, President, TVA Infotech, says, "This is about a year or year-and-a-half away from the US general elections. This happens every four years."

The companies have been asked to respond to the letter by May 29. While the IT companies have refused to react, the IT software and services industry association Nasscom says, "We would urge that work permits and intra-company transfers should not be confused with immigration."

Analysts also warn that if the US tries to restrict H1B visas, it would actually mean more jobs for Indians.

Suhas Nerurkar, President, TVA Infotech says, "Everytime there is an attempt to curtail visas strategically, more work has moved offshore."

It was the US Consulate that had insisted 10 years ago that companies send their officials abroad on H1B visas and not business visas. That way, the US will earn taxes. But now US Senators don't want to part with H1B visas either!