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October 5, 2020 02:48 pm

Trump Cracks Down on Visas. Indian Firms May Benefit.

As the president clashes with the courts, some companies and investors say tougher limits on temporary work visas will help push jobs overseas. From a report: When President Trump suspended a raft of visa programs in June, including temporary permits for highly technical foreign workers known as H-1B visas, he portrayed the order as a victory for the American work force. Further overhauls were in the works, he said weeks later, "so that no American worker is replaced ever again." The order is now in front of the courts, after a judge on Thursday blocked the order and ruled that Mr. Trump had overstepped his authority. The move will allow some companies, like Microsoft and Exxon Mobil, to bring temporary workers into the United States again. The issue will now go to an appeals court, which may rule in favor of Mr. Trump's sweeping order. But the fate of the program still remains in doubt. The Department of Homeland Security has submitted a new regulation for federal review that would toughen H-1B eligibility and impose new obligations on the companies trying to bring in foreign workers. The uncertainty has thrown the plans of major companies in doubt and has already disrupted the lives of thousands of foreign workers, particularly those from India, who claim more than two-thirds of the H-1B visas issued each year. The confusion might all be in vain, however. Experts say restrictions will do little to accomplish their stated goal of encouraging companies to hire Americans instead of workers from abroad. In fact, limits on H-1B visas may have the unintended effect of spurring American companies to shift even more work abroad. Already, Indian outsourcing companies are working to cast the new restrictions as an opportunity to do just that. "In America, there is a genius mix of homegrown and transplanted talent. The high level of global competition gives America its tech edge," said Sandeep Kishore, the chief executive officer of Zensar Technologies, an Indian firm that employs more than 9,500 people globally. More than 400 are on work visas in Zensar's offices in the United States, he said, but more work could drift to India if companies cannot hire who they want. The United States "risks giving up its edge," Mr. Kishore said. "If we can't bring this talent into the U.S., we'll place them in our offices overseas."

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