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DQW Bureau
New Update

The bad news is out. The slow down in the US economy is beginning to take its toll. There is likely to be a reduction in the coveted H1B visas (work permits) for software and other high tech professionals this year. This is because companies in the US are reducing their manpower requirements as part of cost cutting

measures.

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Last year, the US government granted 115,000 such visas globally. Nearly 45 percent of these visas were given to Indians, who are the largest beneficiary of the shortage of software talent in the US market. Based on demand-supply projection, the US Congress had increased the H1B visas to 195,000. But, according to Harris N Miller, President, Information Technology Association of America (ITAA), US companies are not likely to recruit the full quota this year. 

The private computer training industry has been a major beneficiary of the demand for high skilled software professionals. This industry supplemented the efforts of the formal engineering education system to train people for the software development and service sectors. So as long as the US slow down persists, India's computer training industry may face difficult times. 

If the US economy perks up, the demand for people may go up. But there is another worrying trend from our national viewpoint. According to current reports, more and more students in America are now opting for computer science related courses. If this trend continues, the software major may be able to fulfil their human resource needs from the domestic market itself. Further, many other countries such as China, Indonesia, Philippines etc. have been making efforts to increase their output in training software professionals. 

However, the US slow down is becoming good news for Indian companies. There are definite indications that more orders are pouring in. Also a number of US companies are planning to set up development centers in India to tap the software talent pool. Indian companies too can look forward to picking up talent relatively easily under the present conditions. Approximately 180,000 new jobs are likely to be created this year and only about 120,000 IT-trained students are expected to emerge from our educational institutions. So companies have to gear up with innovative strategies to attract and retail good software professionals hereafter. 

 State governments too have taken up the job of creating more number of software professional. While Tamil Nadu has taken several key steps in the past year, it is now Kerala's turn. Kerala intends to increase the engineering college seats to 100,000 from the current level of 9000 by 2004. Other States too may increase the seats to improve the overall supply. It is now up to Indian companies to devise suitable plans to rope in the people eyeing the US market and use their talent appropriately within the country itself.

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