US action will singe IT firms - Daily News & Analysis

Even as United States president Barack Obama hails India on her 63rd independence anniversary, the new Border Security Act, which raises visa fees substantially, is expected to cost information technology (IT) outsourcing firms in India a whopping $200 million (Rs930 crore) a year.

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The US has increased skilled work visa charges by nearly $2,000 (Rs93,000) per person per year. There are 70,000-1,00,000 Indians in the US, nearly all of them IT professionals, working on three-seven year visas, who will be impacted by the change. The move is targeted at bridging the cost difference between employing an Indian technology worker and a local worker. Indian and international IT firms prefer hiring Indian workers over locals as they are paid $60,000-$80,000 a year, making them around 20% cheaper than Americans.

US action will singe IT firms - Daily News & Analysis