At the 2013 ISG Sourcing Industry Conference in the Americas, a panel discussed short-term scenarios and long-term implications of developing immigration reform.

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Panel Discussion
September 9th, 2013
Short-Term Scenarios and Long-Term Implications
Immigration Reform

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Immigration Reform Squawk Box: Agenda
1. Summary and Current State
2. Short-Term Impacts
3. Mid-Range Outlook
4. Long-term Considerations

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Immigration Reform: a Summary
►Separate Senate and House approaches. High-skill provisions are part of a much
larger comprehensive immigration reform debate.
►The legislation would increase visa and green card numbers while also imposing
new restrictions and fees on certain service providers based upon the ratio of
visa holders to US citizens and legal permanent residents in their US workforce
►Provisions in the House legislation increase wages and fees
►Provisions in the Senate bill ban outplacement, increase fees and wages, require
additional non-displacement attestations, enhance enforcement and more
►Senate passed its bill. House may consider its bills in October/November.
House-Senate Conference afterwards. Action rolls into 2014.
H-1B and L-1B visa provisions would impact India heritage and India centric
service providers’ ability to staff projects for U.S. customers.

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Implications: Short-Term
►What questions are being asked by clients and prospects?
►What contingency plans should clients and providers be implementing
today?
►How would changes impact existing outsourcing contracts and
negotiations for new deals?
►How would you go about establishing a risk profile to assess the
preparedness of a provider to deal with changes in visa policies?
Uncertainty notwithstanding, providers should be working with clients to
anticipate and address potential risk

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Medium-Term Implications: Market Impact
►Will there be a consolidation of the players?
►Who are the likely candidates to acquire or be acquired?
►What will be the long-term impact of changes in visa provisions in terms
of, for example, making offshore captives or domestic sourcing options
more attractive?
►Could visa restrictions ultimately help India heritage and India centric
firms by incentivizing investment in a domestic presence?
How would changes affect individual providers and their business
strategies?

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Long-Term Considerations
►What does the need for temporary work visas say about the state of U.S.
education?
►What can/should India heritage providers do to obviate the need for
temporary visas (by, for example, funding training centers in the US)?
►What can firms do to increase their local hiring and/or move visaholders
to green cards?
►Will immigration reform push more work offshore?
►Will automation and the demise of the labor arbitrage model ultimately
make the visa issue a moot point? If so, when?
The long-standing temporary visa issue raises some pointed questions
about free trade, U.S. education and “global” service delivery.

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