With costs going up and service disruptions it would

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Unformatted text preview: .6 4.0 0 3 2 1 0 1QCY12 2QCY12 Source: BLS, Deutsche Bank 3QCY12 4QCY12 1QCY13 2QCY13 3QCY13 Source: BLS, DICe.com, Deutsche Bank Bill must be passed in 1HCY14 or fail – recent news flow indicates progress With the stalemate on the Bill after being passed by the Senate, the possibility of the House of Representatives taking up the 1,300 page comprehensive bill has so far appeared remote. However, of late, House speaker John Boehner has indicated that he might be open to taking a step-by-step approach to the multiple issues covered under the comprehensive bill. With President Barack Obama open to a piecemeal approach as long as the broad goals of the Bill Page 16 Deutsche Bank AG/Hong Kong 7 January 2014 Software & Services Indian IT Services passed by the Senate are approved, chances of the Bill being tabled and debated have become brighter. We note here that with campaigning for the mid-term Senate elections slated to start from middle of 2014, the bill has to be tabled, debated and passed before the focus shifts. The bill could fail like the Comprehensive Immigration Reform Act of 2007 if it is not passed by 1HCY14 as there would be a new set of Senators in 2015. Figure 22: US Border Security, Economic Opportunity, and Immigration Modernization Act – timelines, current status and potential future actions Timelines and Key Issues Comments and forecasts **The immigration reform bill was introduced in the US Senate by Sen. Charles Schumer co-sponsored by a bipartisan group of another seven Senators. Key provisions of the bill pertinent to IT services offshoring vendors are: 16 April, 2013** 1.Client placement restrictions: Employees cannot work at client locations if 15% of US employees of the Indian IT service provider are on H-1B visas 2. Cap on employees holding visas: Bill places limits on ratio of H-1B visa holders to total employees in the US using a staggered approach. Limit on the ratio is 75% for Dec-14 and moves down to 50% by Dec-16 3. Higher visa fees: If company employs >50 employees in the US and 30% - 50% of employees are on H1 and L visas, fees of USD5,000...
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This document was uploaded on 02/06/2014.

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