By Don Tomslee
Copyright indiatimes
ET OnlineThe technology consulting company faces potential business model disruption as the H-1B fee increase targets Indian IT services firms that rely heavily on foreign worker visa programs
Infosys stock fell as much as 4.5 per cent Friday, September 19, following reports that President Donald Trump expects to sign a proclamation requiring a $100,000 fee for H-1B visa applications. The Infosys stock decline reflects investor concerns about the proposed H-1B visa fee impact on the company’s business model.The Trump administration’s H-1B visa fee plan aims to curb program abuse through substantial cost increases. The proposed H-1B fee represents a significant departure from current visa pricing structures.Other major H-1B visa program users saw share prices fall alongside Infosys stock movements. Cognizant Technology dropped 4.3 per cent while Accenture fell 1.3 per cent following the H-1B visa fee announcement.Also read: US corporate immigration strained by policy hurdles and enforcement pressuresThe proposed H-1B fee increase could impact business models of technology consulting companies that rely heavily on the visa program. These firms use H-1B visas to bring foreign workers to United States operations.Live EventsTrump administration expected to sign H-1B fee proclamationAccording to Bloomberg News, citing a White House official familiar with the matter, Trump expects to sign the H-1B visa fee proclamation as early as Friday. The measure would restrict H-1B program entry unless accompanied by the substantial $100,000 payment.The Trump administration asserts that H-1B visa pathway abuse has displaced US workers. The proposed H-1B fee serves as a deterrent mechanism for companies seeking foreign worker visas.Indian IT services companies face major impactThe H-1B visa program is widely used by large technology, consulting, and finance companies to employ skilled foreign workers in technical roles. Indian IT services companies like Infosys have historically been among the largest H-1B visa sponsors.Infosys and similar companies use H-1B visas to staff US-based projects with workers from their home country. The proposed H-1B visa fee increase directly targets this business practice.Immigration policy reform targets employment-based visasThe H-1B visa fee initiative represents part of the Trump administration’s broader immigration policy reform efforts. The administration focuses particularly on employment-based visa programs believed to be exploited at American workers’ expense.The proposed H-1B fee increase follows other Trump administration measures targeting skilled worker immigration programs. These policies aim to prioritize domestic employment opportunities over foreign worker recruitment.Also read: Trump to impose new $100,000 fee for H-1B visas in sweeping overhaul: ReportTechnology sector investors continue monitoring potential H-1B visa program changes that could affect major companies’ operational strategies and profitability margins.Add as a Reliable and Trusted News Source Add Now!
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