American businesses can move jobs abroad

More than a month after its announcement, the US’s new H-1B visa policy is still causing controversy, especially in the global technology industry. The $100,000 fee that President Donald Trump applied for each new H-1B application could force many US businesses to move their workforce abroad, instead of hiring locally.

According to experts, the new fee is supposed to limit the situation of foreigners "taking away American jobs" by allowing only excellent and irreplaceable personnel to stay. However, the policy is backfiring, as many American corporations consider moving jobs to global centers in Europe or India - where costs are lower and high-level human resources are available.

Mr. Shashi Tharoor - Indian Parliamentarian said: "The biggest challenge will come to Indian businesses that are implementing contracts for US partners. Having to pay an additional $ 100,000 for each employee sent will make these contracts no longer financially viable. Many companies may be forced to cancel or renegotiate, disrupting the supply chain of technology services between the two countries.

This visa policy would prevent Indian engineers from coming to the US to work for salaries of around $60,000 a year. Meanwhile, American workers will not do the same jobs unless they are paid at least $85,000 or $90,000 a year. The $100,000 fee would make low-level engineering positions unviable, leaving only the most senior, who are truly irreplaceable. I am not sure how this would work in practice, as it would have a huge impact on the labor market and would be detrimental to both the US and its partner countries.

First, for many companies, the obvious solution is outsourcing – meaning that work that used to be done in the US can now be moved to the same group’s European subsidiaries in Germany, the UK, Ireland, France, or in many cases to its global competence centers in India. This means that in effect, Indian engineers are doing the same job, for the same salary, but instead of being in the US, they are working in India.”

India accounted for 71% of all H-1B visas issued last year, according to US government data, while China was second with nearly 12%. Following the announcement, Indian tech stocks lost about $10 billion in market value in a single day, reflecting concerns that the US visa policy could lead to a flight of high-tech talent away from the US, rather than attracting it as originally intended.

Source: https://vtv.vn/doanh-nghiep-my-co-the-chuyen-viec-ra-nuoc-ngoai-100251022060916137.htm