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H-1B rejections: An Opportunity for India

IT consulting firms’ approval rates are 20 – 30% lower than technology firms like Google, Microsoft, Amazon etc, which have their own technology centers in India.

H-1B approval Trend

H1-B approvals are getting tougher by design. This is true for L-1 visas as well. In response, IT consulting firms alleviating this threat by hiring more citizens and green card holders locally. Unfortunately, the demand-supply inequity in the US for technology skills hinders this approach as well.

Shift in thought process

The outlook for service providers, with H1-B visas baked into their business model, does not look rosy. To India’s benefit, this imbalance is influencing the behavior of US enterprises. US enterprises, to stay ahead of competition, have started leveraging talent in India by setting up their own centers. Their need for better integration of the global talent pool with their business is only accelerating this process.

Innovation Ecosystem

Over the past few years, India has seen a spurt in growth of the innovation ecosystem. The key elements in the innovation ecosystem that are accelerating the innovation process:

  • start-ups
  • academia
  • tech firms with India as a market.
  • Research Institutions
  • Investment community
  • Technology Talent
  • Government’s “Make-in-India” initiative

Innovation Centers

It is no longer just a cost-rate arbitrage objective for global enterprises to set up their own centers. Today they are deriving significant value from the talent pool in their respective India centers. To this end, global enterprises are transforming their centers into innovation centers where inventions are taking priority over regular back-office & support activities. This is reflected in the number of patents filed in India last year.

Movement of Leadership Talent

The potential threat of rejections of H1-B visa renewals are moving the talented technology leaders to India. Interestingly, the global enterprises are gobbling them up to lead their innovation centers. This is a win-win situation.

Advantage India

Today, India hosts more than 2000 centers of global enterprises employing over 1 million employees. These numbers are growing aggressively. They, in turn, spawn off new start-ups through their incubation and accelerator programs. This accelerates the expansion of the innovation ecosystem. This self-sustaining cycle is an opportunity for India to stay ahead in the innovation race globally.

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