H1-B visa reforms could drive an acquisition spree from Indian IT Services firms

By Ramone Param, Associate Director, Market Intelligence & Buyer Coverage, Equiteq.

Earlier this week, the US Citizenship and Immigration Services (USCIS) announced that it would take a more targeted approach to site visits of H-1B requesters and issued guidance that entry-level computer programmer positions could not be presumed specialty occupations, a requirement for the issue of a H1-B. The Justice Department also issued a press release cautioning employers petitioning for H-1B visas to not discriminate against American workers. There is an expectation that an executive order will also be introduced to call for a further review of the H-1B work visa.

Indian IT Services firms expected to face increasing pressures from H1-B reforms

The tightening of U.S. visa rules under the new administration is expected to place increasing pressures on costs for the Indian IT outsourcing industry. Over 60% of the industry’s export revenue comes from the U.S. and this work is dependent on cheap non-American coders and engineers. These workers will typically use H1-B visas to work locally, while getting paid a lower wage as compared with local non H1-B employees. Although the H1-B visa system works via a lottery system, Indian outsourcers are considered to be the top recipients of these visas, with some believed to be using loopholes, such as filing multiple applications for individual workers, which are not available to smaller companies.

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Equiteq wins Cross Border Deal of the Year award!

We are delighted to announce that we have won Cross Border Deal of the Year ($50 – $100mm) at the M&A Advisor Awards 2016.

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Our Managing Director for North America, Nico Esposito, collected the award at a ceremony in New York on Nov 9. It was given to us in recognition of the quality of our work on the successful sale of Noah Consulting to Infosys. To read a case study on the deal, please click here.

David Fergusson, Co-CEO and President of The M&A Advisor said “The award recipients represent the finest in the M&A industry in 2016 and earned these honors by standing out in a group of extremely impressive finalists. From lower middle market to multi-billion dollar deals, we are recognizing the leading transactions, firms and individuals that represent the highest level of achievement.”

Nico Esposito added “Our thanks go to Noah Consulting, who gave us the opportunity to work with them and to help realize the value they had built in their very exciting business.”

David Jorgenson, CEO at Equiteq talks about our win.

To read the full press release, please click here.

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