IT deals may be revised after new visa rules

Information technology deals, that are in the process of getting signed or will be up for renewal next year, are likely to be renegotiated as the US unprecedentedly hiked the H-1B visa fees to $100,000 from next year in a huge blow to India’s flagship export industry.

- AVIK DAS

Experts say that such prohibitive costs may force IT services companies to keep their prospective visa employees in India. On the other hand, they will have to step up their nearshore contingencies in Canada and Mexico and fast-track plans to hire more in the US — both will add on to their cost and impact their already-pressured margins.

Deals worth about $20 billion were up for renewal this year, Business Standard reported in March. Some of the major deals still to be closed include TCS’ deal with Star Alliance and Nielsen, Infosys’ with Daimler and GE Appliances, and Wipro’s with German energy company E.ON and Brazil’s Petrobras.