TV Mohandas Pai, angel investor, ex-chief financial officer of Infosys executive and IT industry commentator(Livemint)
TV Mohandas Pai, angel investor, ex-chief financial officer of Infosys executive and IT industry commentator(Livemint)

Tightening visa norms a blessing in disguise for IT firms: Pai

By PTI | PTI, Hyderabad
UPDATED ON APR 12, 2017 01:37 PM IST

The tightening of H1-B work visa rules in the US would be advantageous to Indian IT firms as they would shift more work offshore and also be in a position to improve their billing rate, says industry veteran T V Mohandas Pai.

The present business model of Indian IT companies -- offshore-onsite work ratio of 70:30 would now go up to 90:10, the former Chief Financial Officer of Infosys said.

“So, what will happen is they (Indian IT firms) will offshore more work and increase their competitiveness. They will do only 10% work onsite, and 90% offshore,” Pai told PTI.

“It can be done very easily for 70% to 80% of the business. It will improve their competitiveness and make them better,” he said.

“The new H1-B regulations are very good for Indian IT, and bad for companies which try to use it for cheap labour. First of all, Indian IT is not cheap because what they bill to clients is $125,000 to $150,000 per year (for an onsite employee),” he said.

“The average pay is around $80,000 to $85,000 per year. They are unnecessarily getting a bad name, because some fly-by-night operators are trying to do body-shopping and spoil the name of the entire (Indian IT) industry,” he said.

The new regulations would play to the strength Indian IT companies because they have been reducing the number of H1-B visas they collected since 2014, he said.

“So, they are already getting prepared. It will increase the billing because it will create artificial scarcity in America, and allow Indian companies to bill more for work because there are not enough Americans to fill the positions that are needed”, said Pai, who is Chairman of Manipal Global Education Services and Aarin Capital.

“It’s a blessing in disguise, I don’t think they need to be scared or anything,” he said.

As for possible downsides on the visa front, Pai said there would be some uncertainties for the next six months “because nobody knows what they (US Labour department) are going to do and how they are going to behave and all that.”

“Uncertainty is because the US Labour Department is threatening more inspections. They will find out the number of applications (by Indian IT firms for H1-B visas) have come down and they should be happy,” Pai said.

On what Indian IT companies should now do following the tightening of H1-B visa regulations, he said, “Increase offshoring, increase automation and drive up billing rates. It will be to their advantage.”

SHARE THIS ARTICLE ON
app
Close
Rule 10 of Legal Metrology (Packaged Commodities) Rules, 2011, provides that e-commerce entities have to display details of the manufacturer.(Reuters)
Rule 10 of Legal Metrology (Packaged Commodities) Rules, 2011, provides that e-commerce entities have to display details of the manufacturer.(Reuters)

CAIT alleges Amazon, Flipkart, Zomato and Swiggy of flouting rules

PTI, New Delhi
PUBLISHED ON JAN 25, 2021 06:19 PM IST
CAIT Secretary General alleged that similar obligations were imposed on e-commerce food business operators.
Close
Amazon has asked the High Court in New Delhi to enforce the decision of a Singapore arbitrator.(Reuters)
Amazon has asked the High Court in New Delhi to enforce the decision of a Singapore arbitrator.(Reuters)

Amazon tries to block Future's asset sale to Reliance after regulatory approval

Reuters, New Delhi
PUBLISHED ON JAN 25, 2021 05:52 PM IST
The Amazon filing also argued that Future should not rely on any regulatory approval it has received, in light of the arbitrator's injunction.
Close
FILE PHOTO: The Apple Inc logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar/File Photo(REUTERS)
FILE PHOTO: The Apple Inc logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar/File Photo(REUTERS)

Apple faces Italian suit over iPhones that wear out too quickly

Bloomberg
PUBLISHED ON JAN 25, 2021 04:40 PM IST
The lawsuit mirrors US cases over claims that the company misled consumers about iPhone battery power and software updates that slowed the performance of the devices.
Close
A customer hands Indian currency notes to an attendant at a fuel station in Mumbai, India.(Reuters)
A customer hands Indian currency notes to an attendant at a fuel station in Mumbai, India.(Reuters)

Rupee rises for 5th straight session, settles 3 paise higher at 72.94

PTI
PUBLISHED ON JAN 25, 2021 04:08 PM IST
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.10 per cent to 90.32.
Close
Finance Minister Nirmala Sitharaman will unveil the Budget 2021-22 on February 1.(PTI)
Finance Minister Nirmala Sitharaman will unveil the Budget 2021-22 on February 1.(PTI)

Government may tweak customs duties on host of goods in Budget 2021

PTI, New Delhi
PUBLISHED ON JAN 25, 2021 03:58 PM IST
Sources said that while import duties could be tweaked on over 20 products, the customs duties could be removed on select raw materials.
Close
Sensex settled the session at 48,347, down 531 points(PTI)
Sensex settled the session at 48,347, down 531 points(PTI)

Sensex tanks over 500 points, Nifty ends below 14,250

PTI, Mumbai
UPDATED ON JAN 25, 2021 08:28 PM IST
Over the last three sessions, the BSE Sensex has lost 1,444.53 points or 2.90 per cent and the NSE Nifty has shed 405.80 points or 2.77 per cent.
Close
The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of <span class='webrupee'>₹</span>1.10 lakh crore in revenue arising on account of the implementation of the GST.(PTI)
The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of 1.10 lakh crore in revenue arising on account of the implementation of the GST.(PTI)

FinMin releases weekly installment of 6,000 cr to meet GST shortfall

PTI, New Delhi
PUBLISHED ON JAN 25, 2021 03:06 PM IST
Till now, 70 per cent of the total estimated GST compensation shortfall has been released to the states and union territories (UTs) with legislative assembly.
Close
The least registration in the ESI scheme for both men and women in the formal sector came in the month of April 2020.(Representational photo)
The least registration in the ESI scheme for both men and women in the formal sector came in the month of April 2020.(Representational photo)

NSO releases employment outlook report

By hindustantimes.com | Written by Deepali Sharma, Hindustan Times, New Delhi
PUBLISHED ON JAN 25, 2021 02:54 PM IST
In all the three schemes, the number of new registrations increased after June 2020.
Close
Gold is considered a hedge against inflation, likely from widespread stimulus. (HT Photo) (Representative Image)
Gold is considered a hedge against inflation, likely from widespread stimulus. (HT Photo) (Representative Image)

Gold eases on doubts over US stimulus passage

Reuters
PUBLISHED ON JAN 25, 2021 02:50 PM IST
Spot gold fell 0.1% to $1,850.91 per ounce by 0822 GMT, having dropped 0.9% in the previous session. US gold futures fell 0.2% to $1,851.80.
Close
A government agricultural officer collects urine samples from pigs arriving at a slaughterhouse in Wuyi county, Zhejiang province, China.(REUTERS)
A government agricultural officer collects urine samples from pigs arriving at a slaughterhouse in Wuyi county, Zhejiang province, China.(REUTERS)

China's pigs become unexpected threat to palm oil's rally

Bloomberg
PUBLISHED ON JAN 25, 2021 02:16 PM IST
The world’s biggest pork producer and consumer is scooping up unprecedented quantities of soybeans and corn on world markets to feed domestic hog herds.
Close
Reliance shares gained about 5.8% last week in the run-up to the results but were flat for this year after a more than 32% gain last year.(Reuters)
Reliance shares gained about 5.8% last week in the run-up to the results but were flat for this year after a more than 32% gain last year.(Reuters)

Reliance Industries shares fall nearly 5% as Covid-19 hits oil business

Reuters, Bengaluru
PUBLISHED ON JAN 25, 2021 11:53 AM IST
Reliance's revenue from its oil-to-chemicals division fell nearly 30% in the three months ended Dec 31.
Close
FILE PHOTO: Representations of virtual currency bitcoin are seen in this picture illustration taken taken March 13, 2020. REUTERS/Dado Ruvic/Illustration/File Photo(REUTERS)
FILE PHOTO: Representations of virtual currency bitcoin are seen in this picture illustration taken taken March 13, 2020. REUTERS/Dado Ruvic/Illustration/File Photo(REUTERS)

Bitcoin return to $40,000 in doubt as Grayscale fund flows slow

Bloomberg
PUBLISHED ON JAN 25, 2021 11:10 AM IST
The pace of flows into the $20 billion Grayscale Bitcoin Trust “appears to have peaked” based on four-week rolling averages.
Close
On Friday, the rupee had settled at 72.97 against the American currency.(Getty Images/iStockphoto)
On Friday, the rupee had settled at 72.97 against the American currency.(Getty Images/iStockphoto)

Rupee rises 4 paise to 72.93 against US dollar in early trade

PTI
PUBLISHED ON JAN 25, 2021 10:35 AM IST
Traders said the local unit is trading in a narrow range against the US dollar ahead of the US Federal Reserve meeting this week.
Close
The benchmark S&amp;P BSE Sensex gained 0.6% to 49,177.99 by 0353 GMT.(Mint file photo)
The benchmark S&P BSE Sensex gained 0.6% to 49,177.99 by 0353 GMT.(Mint file photo)

Indian shares rise as banking stocks shine

Reuters, Bengaluru
PUBLISHED ON JAN 25, 2021 10:23 AM IST
Tata Motors Ltd climbed 1.6%, after the automaker hiked prices of its passenger vehicles on Friday.
Close
A man wearing a protective mask, amid the coronavirus disease (COVID-19) outbreak, stands in front of an electric board showing Nikkei index outside a brokerage in Tokyo, Japan January 21, 2021. REUTERS/Kim Kyung-Hoon(REUTERS)
A man wearing a protective mask, amid the coronavirus disease (COVID-19) outbreak, stands in front of an electric board showing Nikkei index outside a brokerage in Tokyo, Japan January 21, 2021. REUTERS/Kim Kyung-Hoon(REUTERS)

Asian shares rise on recovery hopes, markets eye earnings

AP
PUBLISHED ON JAN 25, 2021 10:10 AM IST
Japan's benchmark Nikkei 225 gained nearly 0.5 per cent in morning trading to 28,767.43. Australia's S&P/ASX200 added 0.4 per cent to 6,829.60.
Close
SHARE
Story Saved
OPEN APP