Trumped! It Firms to Focus More on Hiring Fresher’s in the US
With strict visa norms coming into place with the arrival of the Trump government, IT giants like Tata Consultancy Services and Infosys are preparing themselves to focus more on hiring freshers from campuses in the US.
This move will surely lead to changes in strategy for the Indian outsourcing industry. The Indian outsourcing industry so far has relied mostly on hiring engineering graduates from India in huge numbers who were later posted to foreign client locations. This has helped them to acquire billion dollar contracts over the years.
Senator Jeff Sessions who will be appointed as the attorney general of the US under the Trump government stated that the government will aim to curb H1-B visa abuse for foreign workers. The H1-B visa system was a big boon for the outsourcing industry of India.
The COO of Infosys stated that the company will now need to look at hiring freshers from colleges in the US. The Indian IT success which has been largely defined by the offshore-pyramid model will require some changes now as per the COO of Infosys. The pyramid base is formed by low paid-coders, mid to senior professionals occupy the middle position. This structure has been instrumental in cutting down costs and also helped to snatch contracts away from expensive multinational rivals. With a strict visa norm coming into place along with increasing costs, IT companies will now have to focus more on hiring people from the US and bring about changes in pyramid model.
Tata Consultancy Services has already stated that it will hire more number of engineers in the US.
Ajoyendra Mukherjee, HR Head of TCS stated that at this point of time it is hard to comment on the percentage of the hiring but the company will ensure that it makes the deliveries depending on customer requirements.
The IT industry of India will face a hit on their margins following the hiring of engineers from the US. US engineering graduates have an average salary of $40,000 or more which comes to 26 lakhs whereas salaries of Indian fresh engineers stay in between 2.6 lakhs to 3.5 lakhs at least for the first five years.
According to industry watchers, IT companies in India will explore different ways to lessen the effects of strict visa regulations but increasing overseas hiring will remain the only option.
The hiring at Indian IT companies has already witnessed a drop. During the first 9 months of financial year 2016, Infosys hired around 17,000 people whereas during the same period this year, the company has only hired 6,000 people. With things definitely looking gloomy for IT companies in India, it needs to be seen what actions are being taken by the companies to tackle this rising concern.
CHENNAI/BENGALURU: For technology companies struggling to cope with the rains flattening Chennai, it has been a tricky balancing act trying Read more
HYDERABAD: IT and services body Nasscom expects that the hiring by IT companies would be about 2.75 lakh during the Read more
Indian stocks fell sharply on Friday amid a selloff in global markets. The Sensex declined over 200 points while Nifty Read more
BENGALURU: Town Essentials, a Bengaluru based full-service grocer that supplies to both institutions and consumers, has raised $1 million (about Read more
