New H1B visa norms likely to isolate Indian IT: Nasscom

The National Association of Software and Services Company (Nasscom) has expressed its concern over the proposed amendment to the H1B visa legislation and said the amendment is likely to isolate and unfairly target Indian IT companies, restricting the level-playing field.

A statement from Nasscom said on Tuesday that it is 'working closely with stakeholders and policy makers in the US Congress' and the administration to ensure that the Indian IT industry is not disadvantaged in any manner due to this.

A team of six officials of Nasscom recently visited the US to prevail upon them over the visa issue and also over the proposed 'Buy America' measure of the Obama administration.

The delegation met senator Charles Grassley, belonging to Iowa, who is spearheading the H1B legislation. Nasscom would be working with him to ensure that any fraudulent use of the H1B visas are apprehended and stopped and ensure legitimate business users are not affected.

The industry body said the only 11% of the total visas issued last year was to the Indian IT industry.

The delegation also met a large cross section of stakeholders from the US administration, elected representatives of the Congress, various associations, US headquartered companies and customer companies.

"Having met with various stakeholders and experts and discussed the protectionist measures with them, Nasscom does not see the "Buy America" clause or the discussion on removal of "tax breaks for US companies that create jobs offshore" provisions in their current forms having any impact on the Indian IT-BPO industry. We are confident that US will consider all factors as they have in the stimulus bill and other proposed initiatives for reviving the economy and employment," the statement said.

"The Indian IT-BPO industry has played a crucial role in helping US companies tap these benefits and remains committed to being a part of the solution to help tide over this crisis It is imperative that the US and all countries continue to be proponents of free trade. With more countries impacted with the slowdown, such protectionism would trigger similar protectionist measures. The world economy will find it difficult to reverse this trend quickly. Restricted trade affects businesses, incomes and employment in other countries thus resulting in lower spending and subsequently lower demand for US goods and services globally," it added.