IT firms skirt US visa curb

India's small and medium-sized software companies, perceived to be the worst hit by the restrictions put on H-1B visas by the US government, are finding ways to circumvent this hurdle.

No new H1-B visa before Oct
IT majors have enough H1-B visas
Nasscom sees little impact of H-1B visa cut

Companies are hiring more in the US so that professionals do not have to go there on a H1-B visa, moving more offshore work to India, using other categories of visas and tapping markets other than the US.

Headstrong (formerly Techspan) is increasing its focus on markets like Japan, Europe, Asia and the Pacific. Besides, the company will also use its H-1B visa holders in its development operations in Manila to go to the US on business requirements.

"After the merger with Headstrong, we have a strong team in the US to take care of the requirements there. Besides, we also have a strong on-site set up, which takes care of the needs there," said Harsh Lohit, chief operating officer, Headstrong.

The National Association of Software and Services Companies is of the view that companies must look at alternate markets like Europe, Asia and the Pacific and even the domestic market to offset the impact of the US move.

Some of the smaller firms, which have been sending professionals to the US on H-1B visas, are moving the entire on-site work to India.

Other companies, for instance Momentum Technologies, are planning to use visas like L1 and B1 for various business requirements. Besides, Momentum is also trying to reverse the movement of professionals.

The company is arranging visits of software professionals from its clients in the US to its centres in India rather than its professionals going there so that the dependence on H-1B is limited.

i2 Technologies has adopted a different method. The company hires locals to take care of the requirements in the US and has moved the development work to India.

According to i2 managing director and vice-president Sankalp Saxena, "The most important aspect is to ensure that the company has people in the local market to take care of the needs there."

Infinite Computer Systems chief executive officer Upinder Zutshi said the firm was hiring people holding green cards in the US. Pointing out that visa violations by some of the companies was the reason for the restrictions.

Are Technologies chief executive officer Sanjeev Rai, said, "For a company like us, we will have to look at opportunities in other markets and tap them. We were also able to anticipate the restrictions and take appropriate steps."

According to estimates, small and medium companies account for about 70 per cent of Indian software services companies and about 15 per cent of the total exports. Most of their revenue comes from the US.