“The short- to medium-term future is bright for the leading Indian IT services majors,” said Phil Fersht, CEO of US-based IT research and advisory HfS Research.
“Trump has long diverted attention away from Indian-heritage firms like TCS taking on deals with US firms, especially as firms like Infosys, Cognizant, Wipro and HCL have increased their investments in US delivery centres in recent years,” he added.
Investors have been concerned about risks to Indian IT firms’ business outlook in case Trump gets re-elected and ramps up action to insource IT capability back to the US, with the intent of bringing more jobs into the country.
Analysts, however, suggested that companies have done enough to allay his concerns.
Indian IT firms have set up local delivery centres staffed with engineers in the US, and this strategy is in their favour, they pointed out.
HCL Technologies said last week that it would open a centre in Hartford, Connecticut.
“We seem to have hit a stable situation with visas with the Indian firms having already adopted coping mechanisms,” said Peter Bendor-Samuel, CEO of research and consulting firm Everest Group.
Since Trump took over, US technology companies have been favoured over Indian firms for the coveted H-1B visas, or work permits for technology workers. Indian nationals continue to garner a big chunk of these work permits.
“It appears that the administration’s attention is now on low-cost wage immigration with no further action indicated with (regard to) high-end wage immigration that the Indian firms rely on. It does not appear that there are other measures being contemplated beyond the restrictions on H-1B which have already gone into effect,” he added.
According to recent media reports, Indian IT services companies have been paying higher wages than US-based companies to their US employees. This comes amid concerns over the US’ ability to supplement its economy with enough STEM (Science, Technology, Engineering and Math) talent required in technology services.
Indian IT services firms pay staff in the United States average wages that are higher than local companies, ET reported in September citing a study by IHS Markit.
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5 Comments on this Story
User 276 days ago
Sanujit Roy278 days ago
Bottom line is Indian IT need quality candidates and not quantity
gopal285 days ago
We need to see how many Indians are there in Canada also. Most of the Tech companies are openign branch in Canada and doing near shoring for US companies.
This has helped to circumvent the US hard rule on foreign workers.
300 K Indians got work permit in the last 4 years in Canada.
What US is losing in consumption is being gained by Canada.