Increased visa fees could in fact encourage Indian IT service providers, who've been preparing for such protectionist legislation, to move more work offshore or to nearshore delivery centers they've opened in Canada and Latin America.
"New visa taxes will only help to accelerate the movement of more complex IT work offshore [and nearshore]," says Fersht. "By further discouraging bringing talent to the states, Schumer and company are driving the next wave of IT development out of the country."
Schumer says his intention is to put international "body shops" out of business, but Wadhwa says this law misses the mark. "They are not targeting the true body shops [with these increased fees]," says Wadhwa. "These Indian providers are the crème de la crème of global companies doing very sophisticated work. They're going after the good guys."
The additional visa fees will be used to beef up security at the U.S.-Mexico border, which U.S. technology trade group TechAmerica says is a misappropriation of funds that could be better used to strengthen a "weakening pipeline of science, technology, engineering, and math talent in the U.S."
TechAmerica CEO Phil Bond said in a statement that the companies impacted by the increased H-1B visa fees "provide valuable and innovative expertise to many U.S. companies in critical sectors." He added, "Fee increases risk undermining these important goals while America is struggling to recover economically."
Wadhwa is displeased that the revenue earned from the additional H-1B and L-1 visa fees will be put toward border security. He says using the fees to fund technology courses or scholarships for U.S. IT workers "would do a lot more good than buying drones to kill people at the border."
Read more about outsourcing in CIO's Outsourcing Drilldown.