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The Vital Role Played by H1B Visa in the US Tech Industry
January 24, 2022
4 mins
A group of IT professionals working on multiscreen workstations

Significance & Need of H1B Visa in the Tech Industry

H1B visa is complex and time-effective at the same time. Does that tempt you to apply?
Don’t imagine that you can apply, process, and fly. Though the process is time-effective, only a few applications get selected.

Why is the H1B visa of great importance in the US? The US always considers H1B visa a significant channel for highly skilled foreign workers. The country’s crucial guest worker visa program engages foreign workers for specialized jobs. Therefore, it is quite popular amongst U.S. employers. However, it is valued more because it is time-efficient and hires only proficient workers.

Before you understand the significance of H1B Visa in the tech industry, it is important to know everything about the H1B Visa and why it is so beneficial to many.

H1B visa has undoubtedly benefited the tech industry. At the same time, other sectors like science, finance, and health care are also using it to fill the gaps in their manpower.

Tech Talent Demands for H1B Visas

Tech companies have a great affinity towards the H1B visa always. Hence, they apply for guest worker visas preferring foreign workers with an advanced degree. You will be amazed to know that the spring lottery allots 85,000 visas every year. Out of this, 20,000 get shortlisted with a US master’s degree or higher.

However, tech firms still complain of high-skilled labor shortages in the US. Do you want to know why?

  • Not enough candidates have a STEM degree
  • More visas are required to meet growing tech labor needs
  • Decreased visa numbers under the 1990s program

H1B Workers Play the Trump Card in the U.S. Tech Companies. Why?

1. Pay Cuts

Nobody can deny the talents of foreign workers under an H1B visa. They are better off than the options available with the Silicon Valley tech companies. However, an H1B candidate saves on costs extensively. Foreign workers are cheaper than American candidates. Therefore, the United States gets its work done for a lesser cost with more talented minds.

2. Attracting Top Talents

Isn’t it natural for any company to acquire and retain the best talents? Geographical boundaries do not play any role here. When options are available to hire individuals with exclusive talents, companies will not take chances to let them go. They believe that they make the best utilization of the scope offered.

According to the US Citizenship and Immigration Services (USCIS), H1B visas are categorized under specialized science, computer programming, and engineering sectors. Therefore, American companies or employers sponsor only immigrants with great potential or high knowledge.

3. Feeds Economic Growth

H1B visa increases the economy of the nation. But how? Tech companies hire foreign talents with worker visas. They bring them to the US with no other motive but to enhance the nation’s economy.

4. Absence of Talents

Why do American companies need foreign talents?

  • To fill job positions
  • As there are not enough Americans available
  • Due to shortage of skilled labors

Critics are turning the table against the above-shared points. However, tech companies always look for talents above skills. Therefore, they cannot settle for less and find alternatives for their job openings in foreign countries. The shortage of skilled workers is endlessly pointed out by Silicon Valley, making them ask for more.

5. Global Expansion

Silicon Valley opens the door from various parts of the world in the form of labor. Foreign talents pave the way to other opportunities in business worldwide. Every business mind will not want to miss this opportunity. Therefore, recruiting laborers from other countries is an excellent chance to help the company grow globally.

U.S. Tech Company’s Never-ending Dependence on H1B Workers

Do you know why the IT industry in the United States is constantly eyeing the H1B visa program modification? Corporate leaders create an immediate response when the rules of H1B visa change? Why?

Most of the metropolitan cities in the U.S. with high-tech organizations are overflowing with H1B visa workers. Tech companies rely on foreign workers to compete with the global market.

One best way to ascertain how dependent tech companies are on the H1B program is to review the number of non-immigrant workers in areas dominated by tech industries. Conclude with the below facts.

Silicon Valley

Silicon Valley has a few IT giants like Google and Facebook. Besides these, many other IT companies also rely on H1B visa workers. Reports state that this region is entirely dependent on H1B visa holders.

2016 census data states:

  • 71% of workers in San Jose are foreigners
  • 50% of STEM jobs in Silicon Valley belong to foreigners

Though not all are H1B workers, they are non-immigrant visa holders. Therefore, the key to the success and growth of IT companies in Silicon Valley are foreign workers.

New York

New York is another location with a heavy tech professional population and is the home to immigrants as per history. Based on the percentage of applications compared to other locations, New York ranks number one for H1B visas. Interestingly, 43% of STEM workers here are from foreign countries. Why do many people make their way to New York? It is easy for a foreign worker in the specialty occupation to find their community people sharing the same culture and values here.

Other Cities

The other places in the US that are ranked based on the percentage of H1B applications are:

  • Houston, Texas
  • Chicago, Illinois
  • Redmond, Washington
  • Atlanta
  • San Francisco
  • San Jose
  • Georgia

Also read: H1B Visa Process & Other Must-know Details

To Sum Up

The United States has a great economy with foreign workers of various skills and talents. The skilled immigrants have contributed so much to the US economy to expand its job opportunities extensively. Hence, H1B workers positively impact the economy forever. As a result, they help native-born workers thrive easily with job opportunities.

For a complete understanding of the working of the H1B visa process, visit TechFetch H1B.

**Disclaimer : All US immigration policies and procedures are subject to change. Kindly refer to the USCIS official website for more information.**

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