Sunday, July 2, 2017
The IT outsourcing industry in turmoil
During the U.S. Presidential campaign, the current President announced that he will restrict the IT immigration visa that is the life line for hundreds of thousands of IT outsourcing companies mostly in India. At that time, there was no way to know that the current U.S. President will win the election. But after his win, things have started to change, even when there is a hint of restricting the H1B Visa for IT companies, the stocks of some of the major Indian Outsourcing companies have gone down and they have been forced to reevaluate their strategy of hiring more U.S. based workers. Since Indian Outsourcing companies get almost 60 percent of their business from the U.S. according to some report, it is natural that they would be affected. And besides these forces out of their control, another thing that I have read is that automation and the new emerging technology of artificial intelligence (A.I) will also have a massive effect on their revenues if they don’t change fast enough from their outsourcing strategy. I had the privilege or you can say the unfortunate opportunity to see the fiasco that outsourcing has been doing to companies both U.S. and foreign. If done right, outsourcing can be good like in the case of clothing and manufacturing but financial outsourcing which the U.S. and foreign companies have done lately is nothing much but a major pain in the ass. With time difference between the U.S. east coast and India in the winter and fall season to 10 hours and in the summer and spring to 9 hours it just becomes a major headache to race ahead to finish your work according to different time schedules.