Outsourcing companies that have been among the top users of the H-1B visa program for highly skilled workers say a dip in demand for the program won't last. As of Oct. 25, employers had filed about 72,800 H-1B visa petitions for 2009, leaving more than 12,000 still available some six months after the U.S. government started accepting applications. That's a marked contrast from recent years, when companies snapped up the 85,000 available visas within days of their Apr. 1 offer date.
But the rush for H-1B visas will return as the economy recovers, especially among outsourcing firms that are now the program's heaviest users, say tech industry experts.
"Unless we are heading into a Great Depression, pressure on the H-1B visa program will increase as the economy rebounds," says Peter Bendor-Samuel, founder of the Everest Group, an outsourcing consulting firm in Dallas. "It's almost impossible for me to believe demand [for H-1Bs] will lessen long term. I find it mildly surprising there are some extras left now."
Bendor-Samuel points to what he considers secular trends that will keep demand strong for H-1B visas: an increasing proportion of foreign nationals studying math and science in U.S. universities and the impending retirement of many skilled workers. "Also, while it's politically incorrect to say so, people with 10 to 30 years of [tech] experience are having trouble," he adds. "Employers are under financial pressure to hire cheaper workers coming out of college."
H-1B visas have become especially important to the business models of outsourcing firms, especially those based in India, including Tata Consultancy Services (TCS.NS), Infosys Technologies (INFY), and Wipro Technologies (WIT). In fiscal years 2007 and 2008, these firms dominated the list of the program's top users. These firms typically bring workers from overseas to the U.S. for a short period, often 18 months, and then employ them again in their home countries.
Som Mittal, president of the NASSCOM trade group, which represents India's software and services companies, says that H-1B visas remain important for the services industry. "We need for people to travel back and forth between the U.S. and India to consult on and complete projects," he says. "The reduction in [H-1B] applications is completely linked to the economic downturn. I think that as the economy turns around, the [H-1B visa] cap will again be reached quickly."
For several years the Indian government has encouraged the U.S. government to open up more avenues to rotate workers into and out of the U.S. more easily. On Oct. 26 in Delhi, Anand Sharma, India's commerce and industry minister, met with U.S. Trade Representative Ron Kirk to discuss U.S.-India trade relations. It's unclear what specific requests were made to Kirk, and Sharma's office did not respond to e-mail messages seeking comment. U.S. visa policy was part of the discussion, however. "The issue of H-1B visas was raised, but Ambassador Kirk noted at his press conference in Delhi that the issue falls under immigration policy that lies in the hands of Congress, and not under USTR jurisdiction," Kirk spokeswoman Carol Guthrie said in an e-mail. "He promised to share with the appropriate parties that Indian leaders raised concerns at the Trade Policy Forum."
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