H-1B Visa Not Entirely Bad News for Indian IT

The Trump administration’s plan to change the H-1B visa lottery system to give preference to higher-paid applicants was initially seen as a setback for Indian IT outsourcing companies. However, the reality doesn’t look as negative.

Early analysis shows that Indian IT firms can adjust their staffing models and, in some cases, even benefit from this change. This is because the new selection system won’t only consider high salaries, but will also take into account skills, seniority, and location when allocating H-1B visas.

According to a study by the Washington-based think tank Institute for Progress (IFP), an experienced acupuncturist or social worker earning $40,000 a year could rank higher in preference than an early-career AI scientist at OpenAI or Anthropic making $280,000—or even a surgeon.

The study also suggests that large IT outsourcing companies may actually gain around 8% more visas. This is because they generally hire mid-career professionals in skilled roles at relatively lower salaries. IFP’s analysis shows that about 85% of their employees fall into Wage Levels II and III, compared to about 60% in other firms.


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