The recent changes to the U.S. H-1B visa program are poised to create significant hurdles for companies and introduce a period of uncertainty, along with potential project pressures. Prashanth Nandella, president of the Hyderabad Software Enterprises Association (HYSEA), shared these insights, noting that a more detailed understanding of the implications is expected to unfold shortly.
“We’ve been actively discussing the potential fallout, especially with talks of certain exclusions for projects deemed to be of national interest,” Nandella informed The Hindu. He emphasized that the changes would immediately affect new H-1B applications starting October. Beyond new applicants, a particularly vulnerable group comprises current H-1B visa holders who are presently outside the U.S.
Nandella revealed that “many companies have urged their H-1B employees abroad to return to the U.S. by September 21st.” He acknowledged that it remains to be seen how effectively companies can facilitate these returns and manage their workforce. While the full scope of the impact is still being evaluated, it’s already apparent that “we’re facing considerable uncertainty and potential disruptions to various projects,” he stated.
For several years now, IT service providers have been strategically lessening their reliance on H-1B visas. Nandella clarified, “While H-1B visas are still utilized, the focus has shifted significantly towards local hiring. This has been a deliberate strategy for quite some time. Larger American corporations, which traditionally used H-1B as a primary means for talent mobility, will likely experience some repercussions.”
Nandella emphasized that these changes will undoubtedly create pressure and necessitate a re-evaluation of business strategies, all while striving to avoid adverse effects on ongoing projects. He characterized the visa situation as “a short-term challenge we must navigate,” impacting both individuals and businesses. HYSEA is currently compiling specific data related to Hyderabad and Telangana to better understand the local implications. He also noted that the recently increased visa fees are proving to be excessively high.
Regarding future actions, Nandella stated that HYSEA plans to coordinate with NASSCOM, the national body for IT firms, to engage with the government, building on their past collaborations for various initiatives. He also highlighted the American Chamber of Commerce (AMCHAM) as another crucial entity. “We’ll work with both organizations to develop a comprehensive strategy for addressing this issue. This includes both immediate risk mitigation and a longer-term reassessment of our strategic approach. It’s a situation that demands careful collective deliberation,” Nandella concluded.