Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
2-min read

Indian IT Companies Need to Stop Using H1-B Visas: Infosys Co-founder Narayana Murthy

Indian software companies need to stop sending people on H1-B visas and focus on local hiring in the US, Infosys co-founder N R Narayana Murthy said.

Press Trust Of India

Updated:February 2, 2017, 11:48 PM IST
facebookTwitter Pocket whatsapp
Narayana Murthy
Employees talk as they stand next to flex board poster of Infosys co-founder Narayana Murthy at the Start-up Village in Kinfra High Tech Park in the southern Indian city of Kochi. (Image: Reuters)

New Delhi: Indian software companies need to stop sending people on H1-B visas and focus on local hiring in the US, Infosys co-founder N R Narayana Murthy said on Thursday amid rising concerns over Donald Trump administrations proposals to restrict inflow of foreign workers.

Stating that by and large Indian mindset is always to take the "soft option", Murthy -- one of the pioneers of Indias IT outsourcing industry -- said becoming multi- cultural is not easy and is a "very, very hard option".

"They (Indian software companies) must recruit American residents in the US, Canadians in Canada, British people in Britain etc. Thats the only way, we can become a true multi-national company and in order to do that, we should stop using H1-B visas and sending a large number of Indians to those countries to deliver services," Murthy told NDTV.

He added that recruitment from colleges should be done and local people be trained to add value to Indian companies. The proposed overhaul of popular H-1B visa regime by US President Donald Trump has raised concerns among the Indian IT firms.

Also, the recent introduction of a US bill (Lofgren Bill) that proposes doubling of the minimum wages of H-1B visa holders to USD 130,000 from USD 60,000 has made the industry worried.

Any changes in the visa regime may result in higher operational costs and shortage of skilled workers for the USD 110 billion Indian outsourcing industry.

"I think even if the executive order comes, we should look at it more as opportunity for Indian companies to become more multi-cultural than we have been, rather than looking at it as a lacuna," Murthy said.

The US contributes nearly 62 per cent of the exports. Analysts are of the opinion that Indian tech companies could easily witness around 60-70 per cent rise in salaries of H-1B visa dependent workforce, leading to a 5-10 per cent hit on the margins, depending on the total base of employees currently on H1-B visas.

Asked why Indian companies were in panic over the protectionist stance of the new US administration, Murthy said Indian companies will have to learn to work with non-Indian professionals and become more multi-cultural.

"I think by and large, the Indian mindset is always to take the soft option. Becoming multi-cultural is a very, very hard option, its not easy. Our managers will have to learn with non-Indian professionals, how to get the best out of them, how to work in teams that are multi-cultural, how to make sure that we understand the rules of

crossing cultures," he said.

Murthy added that this was the "only way" to remove the risk of government mandating things like the executive order.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Huma Tabassum
Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp
Most Active
Company Price Change %Gain
Narayana Hruda 360.20 1.22
Bharti Airtel 490.90 -4.55
United Spirits 656.40 14.00
Bajaj Finance 4,213.05 1.14
Gati 69.40 0.73
Top Gainers
Company Price Change %Gain
HDFC 2,432.40 1.53
Bajaj Finance 4,213.05 1.14
Sun Pharma 452.65 0.96
HDFC Bank 1,222.85 0.82
TCS 2,184.05 0.71
Top Losers
Company Price Change %Gain
Bharti Airtel 490.90 -4.55
Tata Steel 446.25 -3.49
Tata Motors 176.10 -3.37
Reliance 1,471.35 -2.34
Maruti Suzuki 6,996.95 -2.05

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results