IT firms lukewarm to EU's Blue Card proposal

The European Commission's proposal to introduce 'blue cards' for skilled immigrants as an answer to US green cards has received a lukewarm response from the Indian IT industry.

While most Indian IT firms said they needed more time to evaluate the real impact of the proposal, some said this would not have a significant impact as Europe was an expensive place to do business.

The Blue Card plan, if passed, would allow suitably qualified people and their families to live and work within the EU. The EU says it needs 20 million skilled workers over the next two decades and is very short of expertise in engineering and computer technology.

The scheme would need the approval of all 27 EU member states. The plan aims to reverse a current trend under which skilled migrants — mostly from Asia and Africa — emigrate to the US to work. The EU trails behind the US and Canada in attracting overseas talent.

IT industry body, Nasscom, is optimistic but feels that clarity will be available only in the next two to three years.

Ameet Nivsarkar, vice-president, Nasscom says, "We have been lobbying with the EU for some time now and this move will not only be good for the Indian IT industry but also for Europe given the shortage of skilled workforce that they are facing. It is still at a high level and it will take some time to evaluate the finer print of the proposal."

"The European Union's Blue Card proposal is at a very nascent stage. We continue to study the proposal as it evolves. From our preliminary understanding, we believe this will positively impact the Indian IT industry as it will reduce procedural and administrative issues involved in the mobility of professionals within the European Union," said a spokesperson of Tata Consultacy Services.

Other big companies like Infosys and HCL are still evaluating what the proposal holds for them. Interestingly, Hyderabad-based software major Satyam says the move will not provide any major advantage to the India IT industry.

V Krishnan, Global Head of HR, Satyam Computer Services Ltd, said, "The concept of the Blue Card has not really taken off yet, and is not so easy to qualify for at this point. Last week, for over 5,000 openings in Germany, only about 500 applications were received."

Reiterating the lack of enthusiasm in the IT industry over the issue, Krishnan said, "Living in Europe is not a very glamorous proposition for Indians – compared with being in India. Typically, it would be senior professionals who would qualify and they would be in a position to get similar positions in India too, with the added advantage of a good quality of life."

He says, "Europe is no longer as attractive as it used to be from the savings point of view as well. Continental Europe will have the additional constraint of a language barrier."