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Last Updated : Apr 23, 2013 05:35 PM IST | Source: Tech2.com

US immigration bill could slow down Indian outsourcers in tech industry

An overhaul of US immigration law will close loopholes that allow outsourcing companies to pay guest workers in the US at rates below wages for equivalently-skilled Americans.

Low-cost efficiency put India's outsourcing companies at the heart of global business and created a multibillion dollar industry that for years has skated over criticism it was eliminating white collar jobs in rich nations. Now, the industry's long-held fears of a backlash are being realised in its crucial US market.Provisions in an overhaul of US immigration law will close loopholes that allow outsourcing companies, Indian and American, to pay guest workers in the US at rates often below wages for equivalently-skilled Americans. The proposed changes are in line with President Barack Obama's vows to make it tougher for American companies to replace American workers with cheaper labour abroad, either by opening factories overseas or subcontracting their work to outsourcing companies.

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First Published on Apr 23, 2013 05:01 pm
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