Indian IT cos to pay 40% higher wages due to new visa rules: US think tank

Major players likely to ramp up local hires in US and go for offshoring to dodge visa and other cost issues

Indian IT service providers may need to shell out 40 per cent higher on wages for H-1B and other non-immigrant visas as a result of the hike in minimum wages by the US Department of Labour (DOL), according to US public policy think tank Cato Institute.

The move is likely to result in companies like Tata Consultancy Services (TCS), Infosys, HCL Technologies and Wipro ramping up their local hires in the US and offshoring, that is, relocating projects to countries such as India to dodge visa and other cost issues.

"Overall, 94 per cent of H-1B job offers were below