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Infosys to focus on local hiring in US after H-1B woes intensify

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The move is likely to incur additional operational cost for the company.

In a major shift in its overseas operation, Indian technology giant Infosys has announced that it will now focus on more local hiring in the United States in the backdrop of new regulations on H-1B visas introduced by the Trump administration.

The move is likely to incur additional operational cost for the company.

Infosys co-founder and Chairman Narayana Murthy had earlier said that Indian IT companies will have to alter its ongoing strategy to continue working in the overseas market.

Indian IT companies have been contemplating adding more local employees to the work force in the United States after Donald Trump, who campaigned against H-1B, won the presidency last November.

Since the inauguration, the Trump administration has signaled tweaks, or even drastic changes to the H-1B program. Trump had promised that he will reform the existing immigration laws and protect the American jobs.

“We are closely monitoring the overall situation with respect to visa… In the last 24 months, we have focused on increasing our presence in the US with a lot more local hiring,” Infosys Chief Operating Officer U B Pravin Rao told investors on a recent conference call.

Rao also said that Infosys has not faced any issues with its business after the new administration introduced regulations on the existing rules. “This year, we will continue that focus. We will accelerate it. We will also start looking at developments and training centers in the US as well,” he said.

Setting up training centers in the US will add to the operational cost of Infosys, but Rao didn’t address it.

Infosys has earned $10.2 billion revenue from North America in the financial year 2016-17, which accounted for 60% of the company’s overall revenue.

The United State Citizenship and Immigration Services (USCIS) recently introduced a new policy memorandum making it difficult for entry level IT programmers to get H-1B visas.

Even the smallest of the changes in H-1B visa norms will affect the Indian IT companies as it will increase their operational cost.