H-1B Shake-UP: US Visa Applications Deleted From March 20; HCL Tech, Infosys, TCS, Other IT Stocks in Focus

H-1B visa, one of the key ways for foreign workers to enter United States, will undergo a significant overhaul from today. Old H-1B visa applications will be deleted from Foreign Labor Access Gateway (FLAG), a US portal for foreign labour applications.

According to a Financial Express report, all temporary labour condition applications like H-1B, H-1B1, H-2A, E-3, etc will be removed from FLAG system from March 20, as a part of the implementation of a new process by the US Citizenship and Immigration Services (USCIS).

Indian IT firms major beneficiaries of H-1B visa

Indian Information Technology firms like Infosys, Tata Consultancy Services, HCL Tech, etc secure over 20% of H-1B Visa approved by the US. Hence, these firms may be susceptible to Donald Trump administration's policy change on US Visa applications.

According to Moody's report, business service providers, like HCL Tech, Infosys, TCS, etc, had gradually increased onshore hiring in the US to minimise impact of Trump's policy change, reported Economic Times.

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IT stocks in focus today

As several IT firms are still dependent on H1B visa applications for hiring, IT stock movement will be closely observed by market-watchers. Nifty IT was up 1.57% to 36,744.75 with TCS, HCL Technologies, Infosys, Tech Mahindra, Wipro, etc trading in green during Thursday's trading session.

The new system will replace the existing application process and will provide more transparency in visa application process and ensure that every applicant gets fair and equal chances to visa application process. But how will H1B visa deletion process impact Indians willing to move to the US? Know here

H-1B Visa registration process: What are the key changes?

The previous visa application process will be replaced by a free an fairer system where all the candidates will get an equal chance to apply for visa application. According to a Times of India report, multiple applications were submitted for a single candidate, but that may not be the case now.

No duplicate entries

As per the new system, USCIS will approve beneficiaries rather than accepting applications, hence it will prevent duplicate entries and reduces the entries and eliminate the practice of filing multiple applications.

Compulsory e-registration

With the implementation of new system, it will be mandatory for employers to register candidates prior to filing H-1B visa applications, that may help reducing the amount of paper work that was required for the process earlier.

Hike in registration fee

As per the new system, the visa application fee has been increased by twenty times from $10 to $215 per entry. The significant fee hike is likely to impact the cost of companies for filing multiple applications.

The system has ensured to make it significantly difficult for big corporation continue with their old practice of bombarding with multiple applications for a single candidate. This used to increase their probability of selection under the lottery system.

What is H-1B visa?

H-1B visa is one of the most preferred way for talented foreigners, including Indians, to work and live in the United States. The non-immigrant visa allpws US employers to temporarily employ foreign workers in special occupations, generally related to information technology, research and development, science, etc.

Most of people preferred by big corporations for H-1B visa applications are talented foreigners with bachelor's degree or equivalent in specific field. The visa system allows US employers to hire foreign workers with specialisation in certain fields. These firms are required to sponsor the foreign worker and file the necessary petitions with US Citizenship and Immigration Services.

United States President Donald Trump recently in February had urged big companies to opt for his recently floated 'US Gold Card visa' to hire talented workers and individuals.

"A person comes from India, China, Japan, and other countries, attends Harvard or the Wharton School of Finance, they receive job offers, but the offer is immediately revoked because there's no certainty about whether that person can stay in the country," Donald Trump said on 25 February while announcing US Gold card visa.