H-1B visa may increase in price and be criticized by outsourcing companies

> H-1B visa may increase in price and be criticized by outsourcing companies. The Washington Post stated that a new work visa fee proposal was added to the Senate immigration draft, which will make people dependent on...

H-1B visas may increase in price and are criticized by outsourcing companies. The Washington Post stated that a new work visa fee proposal was added to the Senate immigration bill, which will make companies that rely on foreign employees, such as Accenture, Infosys, Tata Consultancy Services, etc., pay for strengthened border controls. The move would double the cost of H-1B visas for companies hiring skilled foreign workers to $4,825, and would also increase the current annual visa limit of 85,000 to 180,000, according to data compiled by Bloomberg. The provision specifically targets outsourcing companies where 50% of their employees are H-1B or L-1 visa holders, including Mumbai-based software companies TCS and Wipro. In 2015, those companies will pay $10,000 more per visa. "This change means that the combined cost of hiring overseas workers is the real issue for companies," said South Carolina Senator Lindsey Graham. The Senate Judiciary Committee passed the legislation on May 21. The bill adds enhanced border security measures that would be paid for by implementing new fees for H-1B visas and naturalization applications. The money will be put into a trust fund to help buy drones to monitor the U.S.-Mexico border, build more security fencing and hire more law enforcement officers. The new section was added to the bill to satisfy Republican lawmakers who want any immigration legislation to include measures to make it more difficult for illegal immigrants to enter the United States. The bill also provides a path to citizenship for the approximately 11 million illegal immigrants in the United States. Outsourcing companies have criticized this practice of raising fees. New Jersey-based Cognizant Technology Solutions provides back-office support and other services to JPMorgan Chase, Bank of America and Citigroup. Companies say their businesses would be threatened if the bill goes through. Cognizant was the No. 1 sponsor of H-1B visas in the fiscal year that ended Sept. 30, with 9,336 new visas granted, according to U.S. Citizenship and Immigration Services. The company declined to disclose the number of H-1B visa holders employed at U.S. companies. Dublin-based Accenture will increase fees for H-1B visas by $10.1 million in fiscal year 2012 under the Senate's proposed fee structure. Accenture spokeswoman Joanne Giordano declined to comment. If the Senate passes the proposal, the visa fees paid by outsourcing companies in India, including Infosys, Tata Consultancy Services and Wipro, may increase by 3.5 times. TCS received 7,427 visas in 2012 and will pay $89.1 million annually to bring in the same number of foreign tech workers. Infosys will pay an additional $67.5 million and Wipro will pay an additional $51.7 million. The fees do not include the cost of renewing existing visas and legal fees of $1,000 to $3,000 per employee, the American Council on International Personnel said. The bill would fine companies $10,000 per violation if they misrepresented facts when applying for H-1B or L-1 visas. The U.S. unemployment rate for computer and mathematics occupations in the first quarter of 2013 was 3.5%, well below the average unemployment rate of 7.7%. These two major occupations dominate the share of H-1B visas. Some U.S. companies support raising fees. In a statement released in September 2012, Redmond, Washington-based Microsoft proposed paying $10,000 each for additional H1-B visas. The Judiciary Committee agreed to create a fund that would give companies that sponsor foreign workers their applications for permanent residence an extra $1,000 to encourage science and technology education. Senate Majority Leader Harry M. Reid said he hopes to take up the legislation in his chamber next month. If the Senate passes the bill, it will face opposition from some House Republicans to legalizing illegal immigration.