With Germany becoming a major hub for Indian information technology (IT) companies, the Government has decided to take up the controversial issue of delay in obtaining work permits with German Chancellor Angela Merkel. Ambiguity in rules and red-tapism are the main reasons for delay in getting work permit for IT professionals.

Tata Consultancy Services, Wipro and Infosys are among the IT majors which have offices in Germany. The commerce department will take up work permit and visa related concerns with its German counterpart during the coming visit of Angela Merkel in September, according to a commerce and industry ministry communiqué.

In Germany, Frankfurt has emerged as a major hub of Indian IT companies. Recently, German IT sector acquisitions by Indian companies have picked up after Tata Interactive bought German company Tertia Edusoft in January 2006 and Sonata Software took over majority share of TUI-InfoTec in September 2006. Indian IT companies are facing difficulties in obtaining work permits for their professionals in Germany, chiefly because of delays in processing of applications, which “results in undue hardship to the Indian companies and delays in project execution”, states the communiqué.

Another worrying factor for these companies is the lack of uniformity in the documentation required for different German states, which often ask for a copy of confidential business information. In case a person holding a multiple-entry business visa applies for a work permit, the existing multi-entry business visa is cancelled while the application for work permit is being processed. This in effect “restricts flexibility, especially when the person would like to visit Germany for a short period.”

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