Tuesday, January 31, 2017

"India’s biggest technology companies lost more than $7 billion in market value in a single hour of trading Tuesday, after news reports of proposals in the US to restrict the availability of skilled worker visas for foreigners"


Stock in Tata Consultancy Services (TCS), Infosys, and Wipro — which collectively account for 60% of the revenues of India’s IT sector — tumbled on the news. The three companies collectively send thousands of Indian workers every year to the US to work on the outsourced IT projects they manage.

The companies take advantage of a visa for skilled workers known as an H-1B, which has been a frequent target of criticism from across the political spectrum. Technology giants complain that the limited availability of H-1B visas — a maximum of 85,000 can be issued every year — restricts their ability to hire top-tier engineering talent. Politicians say the system is abused by the outsourcing companies, who use it to bring foreign workers to perform jobs previously done by Americans, but at lower wages.