New H-1B law - last nail in the coffin for struggling IT firms

IT professionals of major tier-1 vendors in India deployed for onsite assignments of BFSI and Automotive clients in the US are a very worried lot. The reason for their worry is the new H-1B amendment proposed by Vermont Senator Bernie Sanders. Sander’s statement makes a forceful push for the cause of American workers to be hired by firms receiving federal assistance under TARP (Troubled Assets Relief Programme) scheme. The senator introducing the new amendment in the senate said that “it is essentially saying that there would be suspension of H-1B programme of any institution, which would be receiving TARP funds for just one year.” He went on to add that firms should have a “moral obligation to protect American workers by putting their interests first during these difficult times.” Indian HR experts are now asking their counterparts in the US if that statement would span to include companies like Citi, Bank of America, JPMC and Goldman Sachs. There are also indications that the big three automotive giants would be clubbed under the TARP list. If that indeed is the case, one can reasonably expect at least 45,000 layoffs from India’s major tier 1 vendors within the next quarter itself.
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