According to sources in a major shock to Indian community aspiring to go to the US, the US President Donald Trump's government has tightened H-1B work visa norms which in turn may burn the profits of the Indian IT service firms further. Meanwhile US' fresh move is expected to put cost pressures on the Indian IT services firms and impact their margins due to increase in compliance and rise in onsite hiring and moreover the impact will be company specific and relative to H-1B visa dependence.
Gaurav Jain, vice-president, corporate sector ratings, Icra, a rating agency said "The changes will disqualify certain positions currently eligible for H-1B visas, thereby impeding the movement of low cost skilled labour from India and will have direct bearing on margins”. Moreover the US is also contemplating on awarding visas to the most skilled or to highest-paid beneficiaries. Accordingly Icra feels this move will work against the Indian IT services sector (H-1B dependent) as the average wage is approximately lower by 25% compared to companies that are not dependent on H-1B visas as per estimates.
Furthermore a firm is defined as H-1B dependent if more than 15% of its US
full-time employees are on an H-1B visa. He said the increased onsite hiring or
raising the compensation for H-1B visa applicants will impact companies' margins
and will be credit negative.
136 people died after a ferry capsized on Lake Victoria, Tanzania Accordingly many are missing and it is feared that more than 200 people in total may have drowned. Rescue efforts resumed on Friday after being halted overnight. As per report the MV Nyerere ferry overturned near Ukara Island on its way from Bugorora. Meanwhile it is thought the overloaded vessel tipped over when crowds on board moved to one side as it docked.
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