US work visa suspension may hurt Indian IT industries margins, further drive local hiring, say analysts

The US move to suspend work visas like H-1B till year-end may hurt the Indian IT industry’s margins as they will have to resort to more expensive local hiring to replace Indians, according to analysts.

A section of analysts thinks that Indian IT companies which have been ramping up local hiring can aid them in mitigating the impact of this development.

US President Donald Trump signed a proclamation to suspend issuing of H-1B visas – popular among Indian IT professionals – along with other foreign work visas for the rest of the year, aimed at helping millions of Americans who have lost their jobs due to the current economic crisis.