US Immigration Bill, which was passed by US Senate last night, is seen impacting Indian IT companies' profitability if passed as a law. Analysts estimate that if the bill is passed in the current version, it could hit earnings per share of the top five firms like Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Tech Mahindra by 12-25 percent.
The Senate judiciary committee had put its version of the Bill through a test vote earlier this week. It had won with an overwhelming majority in favour of the Bill and that what again reflected in final voting last night as well with 68 to 32 (68:32) in favour of the Bill.
Some of the provisions of the bill against which Indian IT sector had been heavily lobbying were not changed. Provisions include increased visa fees, caps on the placement of H1-B workers in client sites and reduction in the number of H1-B workers in the workforce of these companies from about 75 percent to 50 percent in the next three years.
However, IT companies are hopeful that the House of Representatives’ version which is a Republican controlled version would dilute some of these provisions that the IT sector finds discriminatory. NASSCOM has already received communication from the House which says that Republican version will be a more balanced and in favour of corporate.
It is going to be at least four to six months before the final version of the Bill is sent to the President and passed as law.
Also read: H1-B salary rise clause will hit Indian IT cos hard: Nomura
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