Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Safaricom ruling tripped default clauses in Vodacom's loans

      Safaricom ruling tripped default clauses in Vodacom’s loans

      10 November 2026
      Vodacom books R23-billion Safaricom gain as court fight rages

      Vodacom gets prepaid growing again as MTN’s shrinks

      10 November 2026
      Egypt's biggest data centre will have Vodacom money behind it

      Egypt’s biggest data centre will have Vodacom money behind it

      10 November 2026
      Jensen Huang's China problem reaches the FBI. Steve Marcus/Reuters

      Jensen Huang’s China problem reaches the FBI

      10 November 2026
      Rift opens between MTN and Cell C

      Rift opens between MTN and Cell C

      9 November 2026
    • World
      John Ternus faces first big test as Apple CEO - John Ternus

      John Ternus faces first big test as Apple CEO

      2 November 2026
      Alleged Israeli spy company heavily targeted Starlink users

      How online ads were used to hunt Starlink users

      28 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
    • In-depth
      Ducking hell: inside Apple's hidden list of words the iPhone won't suggest

      Ducking hell: inside Apple’s hidden list of words the iPhone won’t suggest

      6 November 2026
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
    • TCS
      TCS+ | Old Mutual's Celiwe Ross on leading people through AI - Old Mutual

      TCS+ | Old Mutual’s Celiwe Ross on leading people through AI

      6 November 2026
      TCS+ | How the Apple ecosystem drives productivity for SMEs - Sudesh Pillay iStore and Kevin McLennan

      TCS+ | How the Apple ecosystem drives productivity for SMEs

      6 November 2026
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
    • Opinion
      Icasa's Sim rules need a privacy backstop - Lloyd Matthew and Heinz Vollmer

      Icasa’s Sim rules need a privacy backstop

      5 November 2026
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Top » Trump on collision course with Silicon Valley

    Trump on collision course with Silicon Valley

    By Agency Staff30 January 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Donald Trump

    US President Donald Trump’s clash with Silicon Valley over immigration is about to become even more contentious.

    After the new president banned refugees and travellers from seven predominantly Muslim countries, Google, Facebook, Salesforce, Microsoft and others railed against the move, saying it violated the country’s principles and risked disrupting its engine of innovation.

    Trump’s next steps could strike even closer to home: his administration has drafted an executive order aimed at overhauling the work-visa programmes technology companies depend on to hire tens of thousands of employees each year.

    If implemented, the reforms could force wholesale changes at Indian companies such as Infosys and Wipro, and shift the way American companies like Microsoft, Amazon.com and Apple recruit talent. Companies would have to try to hire American first and if they recruit foreign workers, priority would be given to the most highly paid.

    “Our country’s immigration policies should be designed and implemented to serve, first and foremost, the US national interest,” the draft proposal reads. “Visa programmes for foreign workers … should be administered in a manner that protects the civil rights of American workers and current lawful residents, and that prioritises the protection of American workers — our forgotten working people — and the jobs they hold.”

    The foreign work visas were originally established to help US companies recruit from abroad when they couldn’t find qualified local workers. But in recent years, there have been allegations the programmes have been abused to bring in cheaper workers from overseas to fill jobs that otherwise may go to Americans. The top recipients of the H-1B visas are outsourcers, primarily from India, who run the technology departments of large corporations with largely imported staff.

    “If firms are using the programme for cheap labor, I think it will affect them and they will have to pay workers more,” said Ron Hira, an associate professor at Howard University. “If tech firms are using the programme for specialised labor, they may find there are more visas available.”

    The Trump administration did not respond to a request for comment on the draft. The proposal is consistent with the president’s public comments on pushing companies to add more jobs to the US, from car manufacturing to technology.

    It’s not clear how much force the executive order would have if it is signed by the president. Congress is also working on visa reforms and the parties will have to cooperate to pass new laws. Zoe Lofgren, a Democratic congresswoman from California, introduced a bill last week to tighten requirements for the H-1B work visa programme.

    “My legislation refocuses the H-1B programme to its original intent — to seek out and find the best and brightest from around the world, and to supplement the US workforce with talented, highly paid and highly skilled workers,” Lofgren said in a statement.

    India’s technology companies, led by Tata Consultancy Services, Infosys and Wipro, have argued they are helping corporations become more competitive by handling their technology operations with specialised staff. They also contend the visa programmes allow them to keep jobs in the US and that if they have to pay more for staff, they will handle more of the work remotely from less expensive markets like India.

    “Inspections and investigations in the past have shown no cases of wrongdoing by Indian IT services companies, which have always been fully compliant with the law,” said R Chandrashekhar, president of Nasscom, the trade group for India’s IT sector. “The industry is open to any kind of checks in the system, but they should not cause any hindrance to the smooth operation of companies.”

    Wipro and TCS declined to comment for this story.

    A spokeswoman for Infosys said the company is monitoring the US visa proposals, but it is too early to assess their impact given the uncertainty of what will be approved.

    “We continue to hire and invest locally,” the company said in an e-mail. “However, given the skill shortages in the US and the availability of technically skilled workforce in various global markets, we also rely upon visa programmes to supplement these skills. For the long term, we are also exploring new operating models to ensure business continuity as we navigate this dynamic environment. This includes reducing our visa dependency and efforts towards making Infosys a preferred employer in the US.”

    The draft of Trump’s executive order covers an alphabet soup of visa programmes, including H-1B, L-1, E-2 and B1. The first is a popular programme with technology companies and is aimed at allowing them to bring in high-skill workers when they can’t find local hires with the appropriate skills. The legislation caps the number of people who can enter the US annually at 85 000, including those with undergraduate and master’s degrees.

    In recent years, though, outsourcing companies have received the most H-1B visas, while other tech companies have struggled to get all they want. In 2014, the most recent year for which data is available, the top five recipients were all outsourcing companies, led by Tata Consultancy.

    Hira, who has done extensive research on the subject, points out workers at outsourcers are typically not treated as well as others. The median wage at outsourcing firms for H-1B workers was less than US$70 000, while Apple, Google and Microsoft paid their employees in the programme more than $100 000, according to data he collected. That suggests the American companies are going after true, highly skilled employees, while the outsourcers are recruiting less expensive talent, he said.

    The proposed Trump order is also aimed at bringing more transparency to the programme. It calls for publishing reports with basic statistics on who uses the immigration programmes within one month of the end of the government’s fiscal year. The Obama administration had scaled back the information available on the programmes and required Freedom of Information Act requests for some data.

    Whatever specific changes are implemented, they are likely to add to the expenses for India’s technology companies. That may accelerate a shift to new kinds of services, such as cloud computing and artificial intelligence, said Raja Lahiri, partner at the Mumbai-based partner at consultancy Grant Thornton India.

    “The visa challenges are not going to go away easily,” he said. “They will continue to be a challenge for Indian IT companies.  — (c) 2017 Bloomberg LP

     

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Amazon Donald Trump Facebook Google Infosys Microsoft Tata Consultancy Services Wipro
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEarth’s magnetic poles could soon swap places
    Next Article Backspace: ‘Zero rated’

    Related Posts

    Jensen Huang's China problem reaches the FBI. Steve Marcus/Reuters

    Jensen Huang’s China problem reaches the FBI

    10 November 2026
    Nvidia's Jensen Huang problem rattles investors

    Nvidia’s Jensen Huang problem rattles investors

    9 November 2026
    Ducking hell: inside Apple's hidden list of words the iPhone won't suggest

    Ducking hell: inside Apple’s hidden list of words the iPhone won’t suggest

    6 November 2026
    Company News
    Rethinking AWS in the age of AI - KineticSkunk

    Rethinking AWS in the age of AI

    9 November 2026
    Your website may be exposed to old flaws AI can now find - Domains.co.za

    Your website may be exposed to old flaws AI can now find

    9 November 2026
    South Africa's connectivity future depends on people, not just percentages - Claudio Coelho

    South Africa’s connectivity future depends on people, not just percentages

    9 November 2026
    Opinion
    Icasa's Sim rules need a privacy backstop - Lloyd Matthew and Heinz Vollmer

    Icasa’s Sim rules need a privacy backstop

    5 November 2026
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Safaricom ruling tripped default clauses in Vodacom's loans

    Safaricom ruling tripped default clauses in Vodacom’s loans

    10 November 2026
    Vodacom books R23-billion Safaricom gain as court fight rages

    Vodacom gets prepaid growing again as MTN’s shrinks

    10 November 2026
    Egypt's biggest data centre will have Vodacom money behind it

    Egypt’s biggest data centre will have Vodacom money behind it

    10 November 2026
    Jensen Huang's China problem reaches the FBI. Steve Marcus/Reuters

    Jensen Huang’s China problem reaches the FBI

    10 November 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter