Indian Software Outsourcing Industry- Facing The American Axe

By Author: ferran jackson
Total Articles: 2
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The anti-outsourcing bill by the US Senate which doubles the visa processing fees and other proposed bill that aims to axe visas for the foreign companies, which do not employ at least 50 percent of Americans in US comes as an double-whammy for the Indian software outsourcing industry.

The major software outsourcing companies in India like Infosys, Mahindra Satyam, TCS and Wipro hire Indian software professionals and send them on HIB visa to various American cities for onsite software development jobs. The Indian companies avoid hiring American workers because of their higher wages and instead prefer Indian software professionals. The Indian software workers provide an affordable option and have the knack to deliver cutting-edge IT solutions. They have also learned well the Western IT practices and these all reasons make them favorite with Indian software companies.

The U.S. economy is staring at double-dip recession and unemployment rates are high. The frustration of the American public is growing with each passing day and politicians are hard pressed to resolve this burning issue. Hence they have adopted an ...
... anti-outsourcing stance in order to generate more jobs for Americans. The anti-outsourcing bills will hurt the Indian software giants like Infosys, TCS, Wipro and Mahindra Satyam because they garner maximum number of yearly HIB visas issued to the Indian software outsourcing industry.

The latest proposed bill which advocates refusal of work visas for the companies that do not employ at least 50 percent American, will come down heavily on the software companies, which send majority of their staff on HIB visa to US for onsite development jobs. They will be hit them most because in order to sustain their business in US they will have to hire costly American workforce once this bill comes into effect. The result is that their bottom-line will suffer and make them less competitive in the market, which is witnessing new entrants from countries likes Philippines, China, Vietnam and East Europe, who are eager to bite deeper into American software outsourcing pie.

However the ingenuity of the Indian software outsourcing industry will help the Indian software companies to successfully negotiate these negative developments. With more than two decades of rich software outsourcing and development experience and thorough understanding of the Western business practices, the Indian companies will rise to the occasion and convert these challenges into resounding business success, as they have been doing in the past.

Indian companies understand well requirements of American business. Even after implementation of the outsourcing law, the American business will be still continue to depend on technical acumen of Indian software outsourcing industry to achieve higher business efficiency.

The Indian companies can get round this law by concentrating more on the offshore development. They should direct majority of their manpower in offshore development and hire American professionals for onsite IT jobs. This will naturally bring down the HIB visa costs as less number of Indian workers will be flying out to US and thus balance higher salary expenses paid to the American workers in their US based offices or onsite locations.

Indian software outsourcing companies will overcome US political bashing by delivering more innovative IT solutions, which American SMEs will find hard to ignore.