US H-1B Visa Plan SPARKING Controversy! Nasscom Warns of DISRUPTION – Is This The End of the Lottery System?

The United States government is planning a significant overhaul of the H-1B visa system, proposing to move away from the current lottery-based selection to a 'wage-weighted' system. This new approach aims to prioritize foreign workers who command higher salaries, with the Department of Homeland Security projecting substantial annual economic benefits.

However, Nasscom, the apex body of India's IT sector, has sharply criticized the proposal. The organization argues that the plan is legally questionable, economically flawed, and operationally disruptive. Key concerns include potential geographical and sector-based disparities, where a moderate wage in a high-cost area like New York could rank higher than a substantial wage in a lower-cost area like Iowa.

Nasscom also highlighted that American companies have structured their recruitment and project cycles around the existing lottery system for two decades, and an abrupt shift could severely disrupt these practices. There are also fears that companies might artificially inflate salaries to gain more entries in the selection pool. The US Chamber of Commerce has echoed concerns, warning that such policies could lead to job relocation overseas and significantly diminish opportunities for mid-career professionals. Nasscom suggested postponing the implementation of the new system.

Impact: This news significantly impacts the Indian IT services sector, which relies heavily on the H-1B visa program to staff its operations in the US. It could lead to increased operational costs, reduced access to skilled talent, and necessitate adjustments in hiring and talent management strategies. The change could also affect the career prospects of many Indian professionals seeking employment in the US. Rating: 7/10

Difficult Terms:

H-1B visa: A non-immigrant visa that allows U.S. employers to temporarily employ foreign workers in specialty occupations. Lottery-based system: A random selection process used to choose H-1B visa applicants when demand exceeds the available visas. Wage-weighted system: A system that prioritizes applicants based on their salary levels, with higher wages potentially granting more chances. Geographical disparities: Differences in wages, opportunities, or cost of living across different regions or locations. Sector-based disparities: Differences in wages, opportunities, or impact across various industries. Specialty occupations: Occupations that require theoretical or technical expertise in specialized fields and typically require a bachelor's degree or higher. OEWS (Occupational Employment and Wage Statistics): A system used by the US Bureau of Labor Statistics to collect data on wages and employment.