Indian Software Outsourcing Industry Receives A Double Whammy
The Indian software outsourcing industry is facing double-trouble in form Visa fee hike and proposed Visa cuts by the US Politicians.
- (1888PressRelease) September 22, 2010 - India - The successful passage of the latest anti-outsourcing legislation signals hike in the visa processing fees for foreign workers sent to US on work permit by foreign companies. The problem will be compounded even further if another proposed legislation, which advocates Visa refusal for foreign companies whose American office does have at least 50 percent local American workers. If this becomes a law it will be double whammy, especially for t Indian software outsourcing companies that are heavily dependent on the HIB visa for their outsourcing business.
The law will dramatically increase the operational costs and make software outsourcing companies from India, less competitive in a business environment, which is witnessing emergence of new entrants from countries like China, Eastern Europe, Latin America, Thailand and Vietnam. The latest development on the American anti-outsourcing front will deeply hurt major Indian software outsourcing companies like Infosys, TCS, Mahindra Satyam, Wipro and others, who every year depute large number of Indian software professionals to various American locations for onsite Software development and maintenance. The law will force them to curtail the Indian software workers in America, which in turn will hurt their business prospects.
The Indian software outsourcing industry will have to look a way around this anti-outsourcing law by adopting a more ingenious approach focused on offshore development to stay competitive in the software outsourcing market. They should at same time focus on making inroads into Japanese market, which is the second largest IT market after US. Wipro has opened development center in China because it provides them an easy road to the Japanese IT market. The other Indian software development companies, big or small should also exploring more greener pastures and at same time bring in more flexibility in their US-centric IT policy so that Indian software outsourcing industry can maintain its dominance in the world IT market, which it has successfully done for last twenty years, without any difficulty.
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