New immigration bill may be positive for IT industry
IT services industry body Nasscom, on Tuesday, sought to dispel gloom over impending U.S immigration reform, saying that a parallel bill being worked out in the U.S House of Representatives had fewer discriminatory clauses for the Indian software services sector.
“A different Bill is being worked out in the House that has more positives. We hope it will be more moderate. It will have an impact when further negotiation and compromise happens with Senate down the road,” said Som Mittal, President, Nasscom, while addressing reporters here on Tuesday.
The Immigration Bill that is currently being pushed by the U.S Senate (the upper house) will force Indian IT firms to remove professionals on H-1B work permits from onsite client locations while doubling visa application-related costs.
The rough contours of the Bill that will be formulated by the House of Representatives (the lower house) may be out in public domain soon, according to industry insiders.
“We have faith in the process of legislation and reconciliation of both Bills. While our ambassador and government officials are in discussions on our behalf…it is our job to change any negative perceptions that people may have,” Mr. Mittal added.
Fielding a range of questions, Mr. Mittal pointed out 12 – 14 per cent growth during the current fiscal was “a reasonable target”, and that the geographical revenue contribution for the industry was bound to change.
“Right now we have 90 per cent of revenue coming from the U.S, the U.K and Europe while 10 per cent comes from the rest of the world. May be, by 2020, we believe that the rest of the world will end up contributing 20 per cent. This will be driven by newer verticals like utilities and healthcare,” he said.