Analysts expect Indian IT firms will expand further into U.S. markets throughout President-elect Donald Trump's four years in office, according to Fortune.
Here are three reasons analysts predict Indian IT firms will expand into U.S. markets.
1. Tighter restrictions on work visas. According to the article, Mr. Trump's rhetoric throughout the campaign called for a more protectionist U.S. technology visa program, which would make it more difficult for immigrants from India and elsewhere to work in the U.S. for IT-motivated work on a temporary basis. A more restrictive visa program could force Indian IT firms to expand their campus recruiting programs at colleges and universities in the U.S. to make themselves more well-known in U.S. markets. However, recruiting and hiring more U.S. citizens would drive up costs, according to Pravin Rao, COO of Infosys, India's second-largest IT firm.
2. Higher minimum wages for foreign workers. Executives in India's banking industry speculate President-elect Trump's administration will raise the minimum wage for foreign workers, according to the article. This could disincentivize U.S. companies from contracting with foreign labor by eliminating the cost benefit of outsourcing. To counter this, some Indian IT firms are looking to acquire American companies. Purchasing U.S. firms would allow Indian IT companies to increase their presence among local populations and in key markets, countering any protectionist regulations the Trump administration may pass.
3. Automation in the workforce. Indian firms are increasingly turning to automated cloud computing and artificial intelligence platforms, and are encouraging U.S. clients to the same. By advocating for automated services now, Indian firms would be able to "accelerate the trend," decreasing the need for onshore developers while promoting their own brand and level of automation.