On June 22, 2020, the US government extended the temporary suspension of new work visas till end of this year. The order also effects changes in the H1B visa allotment process moving from a lottery-based system to one that considers skill set and the compensation being offered. Indian skilled professionals are the largest users of these visas accounting for ~75% of the total number of applications and similar number of approvals. In this Risk Radar, we evaluate the impact of this travel ban on service providers and enterprises/GBS organizations. We also analyze the future ramifications of this ban on service providers and enterprises/GBS organizations. Click here for more information on our location and service provider risk tracking services. Membership(s) Catalyst Locations Insider™ Market Vista™

The proposed visa reforms and greater scrutiny of H-1B visa applications is impacting IT services firms (especially offshore-heritage providers) that have been the largest beneficiaries of this visa program. Almost 60% of the approximately 85,000 H-1B visas in 2016 were granted to these providers. These visa reforms, if passed, will impact the delivery structure of outsourcing service providers extensively, and consequently, their margins. In this viewpoint, we have explored the impact of proposed H-1B visa reforms on the overall margins of IT service providers, especially offshore-heritage providers for three different scenarios: Greater scrutiny of H-1B visa applications resulting in longer turnaround time and lower acceptance ratios H-1B visas are granted on merit-based lottery system without the minimum annual wage clause Comprehensive H-1B reforms are passed with the minimum annual wage requirement Membership (s) Market Vista