As the Indian IT sector feels the heat of Donald Trump’s restrictive visa policies and reducing client spends and pricing pressures squeeze margins and bottom lines, industry lobby ASSOCHAM has pointed out the huge domestic opportunity.
As the Indian IT sector feels the heat of Donald Trump’s restrictive visa policies and reducing client spends and pricing pressures squeeze margins and bottom lines, experts feel that there might be a huge domestic opportunity that these companies may tap into. While thousands of Indian techies stare at job losses in the face of the IT companies’ desperate attempt to cut costs, ASSOCHAM has said that this is an opportune time for Indian IT companies to shift focus from outsourcing to foreign clients and build on the rapidly evolving technological infrastructure back home, echoing the sentiment expressed earlier by some prominent people in India.
“It is time our industry bellwethers looked a bit inward now. It is also time to redraw strategy that gives a good look at the home market, which can more than make up, at least in the short to medium term, for the possible dent on jobs in the disruptive overseas markets,” ASSOCHAM said in a note.
The comment assumes significance as it comes at a time when the US administration is reviewing the rules of the H-1B visa programme, and its adverse impact on the Indian IT companies.
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Earlier last month, the Union Cabinet Secretary P K Sinha had said that the Indian IT companies could find a lot of work within the country itself. “We are seeing that one country after another is putting visa restrictions so that the local population benefits from the opportunities of employment,” Sinha had said. “We need not worry too much about the visa restrictions as we will have ample opportunities here itself,” he added.
In a similar context, Mukesh Ambani, Chairman and Managing Director, Reliance Industries, had also said that the Indian economy does not have access to next level digital infrastructure yet, adding that mobile computing is the defining technology of the century. “Indians are at the bleeding end of the technology,” Ambani had said.
He had said that the election of Donald Trump as the new President of the United States may prove to be a blessing in disguise for India, as it will lead to Indian information technology companies focusing on the domestic problems.
Urjit Patel, RBI Governor, had also warned against the increasing talk of protectionism saying that giant multinationals corporations have benefited from an open trading system built on global supply chains.