President Trump has decided the number of work visa is too high and aims to reduce the number which tech companies have been using to hire tens of thousands of workers. The tech companies hire thousands of people every year and have been allowed to bring people from overseas, one of the biggest places of recruitment is India. A number of companies have grown to meet the demand and the largest three are Infosys Ltd., Tata Consultancy Services; and Winpro. Last year according to their website, Infosys had 25,000 visas. These types of numbers have made the tech companies nervous about their people requirements. According to Sandrine Bastello of Bloomberg News, a company from Canada which is in the same field called CGI Group has hired 11,000 employees and only 485 have a visa requirement.
CGI has an onshore delivery model which offers cheaper services while being on American soil by staying outside the largest cities – close but not in them.
Linking to dividend paying stocks, all governments have regulations, having established a regulation companies develop models to fit and take advantage of the opportunity. Different models work better at different times, the India companies recruited and brought over Indian engineers and they have benefited from the model. If the government regulation regarding H-1B visa is changed, a model such as CGI Group works better. As an investor, you have to ensure whatever model the company you own is following is adaptable to changing regulations.
There are more questions than answers, till the next time – to raising questions.