How Could a Change in the H-1B Visa Program Affect Outsourcing?

How Could a Change in the H-1B Visa Program Affect Outsourcing?

20:12 07 February in Small Business Tips

American companies with a need for talented technology professionals typically leverage the H-1B visa program to flesh out their IT teams with foreign nationals. With a new administration now in power in Washington, will the number of available visas be restricted or the program possibly discontinued? How will any change affect the practice of outsourcing in the industry?

What follows is a quick analysis of this important issue facing high-tech companies in the country. Consider these insights before formulating your IT staffing plan for 2017 and beyond.

The Status of the H-1B Program Under the Trump Administration

Attorney General nominee, Jeff Sessions, has long been a critic of the H-1B program. He introduced legislation last year to cut the amount of visas available to large outsourcing companies, noting the amount of American jobs allegedly being replaced by foreign labor. His boss, on the other hand, has criticized the program while also calling it a valuable way to retain valuable technology talent.

With 65,000 IT workers and 20,000 students able to work and study in the United States due to this program, any reduction in the amount of visas will affect companies across the IT world. This is one of the main reasons the technology industry continues to lobby for an expansion of the program.

Possible Changes to the H-1B Program

The IEEE and other tech industry groups want the lottery system currently used to award visas to be replaced by a policy offering them to companies with open positions paying the highest salaries. Sessions included a similar clause in his 2015 legislation. This would limit outsourcing firms from taking advantage of the program only for cheap labor.

Another group, backed by Facebook’s Mark Zuckerberg, wants the program to award visas to companies who sponsor foreign workers for green cards allowing them to work in the country on a permanent basis. Tech firms need to expect changes to the H-1B program, but what exact form those changes may take is anyone’s guess at this date.

Companies currently suffering from a technology skills gap or struggling to find talented IT workers should consider following a co-sourcing model. This lets your current team work with offshore tech professionals leveraging Cloud-based technology to facilitate communication and collaboration. It allows for cost-savings without using the visa program.

Work With a Leader in IT Co-Sourcing

When searching for a top-notch company as a co-sourcing partner, look no further than SDE USA. Well versed in the latest development technologies as well as state of the art methodologies like Agile and DevOps, SDE can help bring your project to a successful conclusion. Schedule a meeting with us at your earliest convenience to work with a leading software development company.



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