With less than two years to go for the next general election, the government’s report card has become too unpleasant with failures at multiple levels. The economic situation is so bad that State Bank of India in a recent report pointed out that slowdown that is now experienced is real and not technical. Many economists have called for more public spending to arrest the slide. Clearly, the biggest blot on the government as of now is the miserable failure in keeping the promise to create millions of jobs.
That whoosh you hear is of India’s 1.3 billion people speeding along into the decidedly digital age of the future. And it shows in the 3 billion transactions about to be logged by IndiaStack, the open source initiative to help businesses develop a unified software platform, on the back of the rollout of the Goods and Services Tax (GST) and last year’s demonetisation drive.
On May 02, Infosys, India’s second largest information technology (IT) company, announced that it will hire 10,000 American workers over the next two years. Three days later, on May 05, Nasdaq-listed Cognizant Technology Solutions, which has a large presence in India, also revealed plans to significantly ramp up hiring in the US. if and when they do end up attracting talent, Indian IT companies may have to pay through their nose for it.
With President Donald Trump making it abundantly clear that he will curb immigrant work visas to protect domestic jobs, technology outsourcing firms such as Tata Consultancy Services, Infosys and Wipro are focusing on localisation and hiring more Americans to serve their clients in the U.S.
On May 2, 2017 Infosys announced plans to hire 10,000 American workers over the next two years.
At Greyhound Research we believe, steps such as these by IT Services Providers eloquently tell a tale of the pressure they are experiencing under the new Trump administration.
American President Donald Trump’s policy to protect jobs by imposing restrictions on H-1B visas is unlikely to be of any help to that country and may hurt US interests, say experts. What Trump is seeking to protect are entry level jobs that are being phased out by the tech majors, with automation, artificial intelligence and robotics paving the way to increased productivity.
With the latest missive from the Donald Trump administration on H-1B visa, cautioning companies against misuse, the immigration issues of the Indian IT sector are back in news. And it is not the US alone that is drumming up protectionism for political gains. However, industry observers say that Indian IT services companies are resilient enough to weather such issues.
In a fresh blow to software professionals, the Trump administration has moved to bar entry-level programmers from the H-1B visa programme.
US President Donald Trump’s proposal for immigration reforms to encourage merit-based migration might help export-focused software and information technology (IT) sector.
The Indian software services companies will breathe a sigh of relief as the Indian ministries, authorities and industry lobby had a dialogue with a visiting eight-member US delegation headed by Congressman Bob GoodLatte, on the ongoing concerns of H1-B visa holders.
Despite the impending dark overtones cast on India’s IT sector, the reality on the ground is far from anything bleak. Irrespective of the announcements from US president Donald Trump, Brexit concerns and the slowing global economy, the IT sector seems to have factored the low spell and will be only marginally impacted. The sector will likely grow 8-9 percent in FY2017E and could grow at same pace or accelerate in FY2018, according to a technology report from Kotak Instituitional Equities released a week ago.
Rideshare, which allows two or more people going in the same direction to use one cab, might be a good concept, but when did a good concept come in the way of law? It has in the case of cab aggregators Ola and its American rival Uber.
Apple iPhones will be made in Karnataka. The government of Karnataka on Thursday said that it welcomed a proposal from Apple Inc to begin initial manufacturing operations in the state, in a sign that the tech company is slowly moving forward with plans to assemble iPhones in the country.
It may not be a good time to be a techie in America. Correction: It may not be a good time to be a non-American in Trump’s America.
Software services industry, already facing pressures on profitability and revenue, has become the latest target of the Trump administration’s moves to protect American jobs.
On 31 January 2017, an announcement impacting H-1B visa programme has been made by the US House of Representatives making it difficult for companies in the US to employ skilled foreign workers. Among other things, the minimum wage requirement of H-1B visa holders has been more than doubled to USD 130,000. At Greyhound Research we believe this is a significant announcement by the newly appointed Trump administration. While changes were expected under the new President, the suddenness and the order of the announcement has surely caught IT Services Providers across the globe by surprise.
India’s information technology (IT) sector will face temporary setback to move workers from India to the US with the bill introduced in the US House of Representatives that mandates minimum wages of H1B visa holders at $130,000, double the current limit.
Indian engineers have for long viewed the US as the land of El Dorado with its promise of riches — professional and personal. But they are now a deeply worried lot as nationalist rhetoric turns shrill in Donald Trump’s America.
Below are some of the latest tweets on this topic. Read a more updated thread by clicking on any of the tweets from below.
On Dec. 8, thousands of supporters in a packed hall in Des Moines, Iowa vociferously cheered President-elect Donald Trump as he reiterated his campaign promise to bring back home millions of jobs that Americans have lost to foreigners.
IT industry’s representative body, National Association of Software and Services Companies (Nasscom), is exploring hosting its first IT industry event in the United States even as the sector combats the market slowdown.
Handset and electronics business, one of the sectors worst hit by demonetisation, are looking at the government for relief.
今年 7 月份印度政府决定放宽该国的海外直接投资（FDI）标准相关的限制，以便于特定地区的外国公司在印度国内建立运营业务，包括建立单一品牌的零售店在内。这就意味着苹果公司可以在印度国内无障碍地开设自己的零售店了。当地果粉听闻这条消息时应该是很高兴的。
India’s wait for its first Apple-owned store is not going to end soon. In June, the Narendra Modi government had paved the way for Apple to open direct stores in the country—almost a decade after iPhones first started selling here. And while Apple’s Indian fans rejoiced at the decision, it now appears that they may have celebrated too soon.
India’s large outsourcing firms may be hesitant to give a verdict on policies of President-Elect Donald Trump when he gets into office, thanks to his anti-immigration and anti-outsourcing rhetoric that helped him win elections. But Gopi Natarajan, chief executive of Omega Healthcare is betting on Trump’s policies would increase outsourcing and offshoring to countries such as India.
Late on the evening of November 8, 10 executives at Tata Consultancy Services got on a conference call to discuss how to ensure that their banking customers will be able to comply with Prime Minister Narendra Modi’s demonetisation announcement.
The government’s demonetisation of ₹500 and ₹1,000 currency notes has led to the meteoric rise of Paytm, India’s largest digital wallet and payment company.
Republican candidate Donald Trump just two days ago during his election rally had strongly criticized technology giant IBM for laying off 500 staffs working at Minnepolis located on mid-western US state of Minnesota. During his rally, Trump also had said that if he gets elected, his government will not allow companies like IBM to move jobs outside the US and they would have to pay 35 percent tax for developing products outside the US.
The recent change in UK visa rules announced today which created a panic among Indian IT professionals might not have a significant impact, according to experts in the industry.
The UK government has decided to increase yearly salary threshold for technology professionals applying for visa by 44 per cent. Under the new visa rules announced last evening by the UK Home Office, anyone applying after November 24 under the Tier 2 intra-company transfer (ICT) category would be required to meet a higher salary threshold requirement of £30,000 from the earlier £pounds.
Regardless of how the economy shapes up after Brexit, Britian’s decision to move out of the EU in June has undoubtedly given birth to a new-world equilibrium for all in Britain and EU.
Greyhound Research believes that despite the proposed outcomes of political and economic liberty arising out of Brexit, Britain’s reliance on the EU (and vice versa) will continue to be pivotal for their respective success.