H1-B visa suspension to have Rs 1,200-cr impact on Indian IT firms: Crisil
Zooming of the denial rates to 39 per cent in FY20, up from 6 per cent in FY16, had led to lower reliance on the visas by the local IT companies, it said. "New H1-B visa issuances contribute less than 5 per cent of the US onshore workforce of the top 5 listed Indian IT firms, which account for 60 per cent of the industry revenue. On the other hand, the share of local hires in their US onshore employee mix has steadily increased from 30-35 per cent in fiscal 2017 to about 55-60 per cent in fiscal 2020,? its senior director Anuj Sethi said.
Suspension of the H1-B visas by the US will cost domestic IT firms Rs 1,200 crore and have a marginal 0.25-0.30 per cent impact on their profitability, a domestic rating agency said on Monday, Photo: Reuters