Indian IT to Take on Offshore Jobs as Strategy Against U.S., Australia Visa Restrictions
IT exporters like Infosys were looking into strategies of stalling their employees from working overseas, as calls for immigration reform urged politicians to respond to loss of jobs and a pushback in the economy.
Infosys Managing Director S. D. Shibulal was quoted as saying in a report by Moneycontrol, "It (immigration bill) is a matter of concern for the industry. It could have an impact on operations of IT firms. But it is not concluded yet. We are watching carefully.”
"We are in constant conversation with clients. They understand that it is an industry issue. We are talking to them to put in place a plan in case the Bill becomes a law," he added, in a report at the Press Times of India.
Immigration bills in countries like Australia and Canada also proposed a hike on Visa fees, making the case for offshoring stronger.
"Outplacement clause is a big concern. It is a show stopper. It prevents from placing the employee at client site and that is a big problem. But, we will have to wait and see the final outcome of the bill," said CFO Rajiv Bansal.
Bansal said one strategy was to focus on offshore work that does not cut into client costs. It could also push up profits. "Any increase in on-site effort increases the margins. So from a margin perspective it is better to have more and more work done off-shore. And this is one of the strategies, which we would be looking at in case the immigration bill goes ahead in its current form,” he added.
Though Indian software outsourcers were against the bill, American companies like Google, Microsoft, Cisco and Yahoo said that this law would mean greater business for U.S. firms, bringing in more talent into the U.S. and adding a push to the recovering U.S. economy.