The U.S President Mr. Trump after coming to power in U.S has adopted protectionist political policies and has coined the slogan ‘Buy American, Hire American’. He has tightened the ‘H1B’ visa norms, which used to be the perfect gateway for entry level Indian IT professionals into America. The salary limit for acquiring the ‘H1B’ visa has been doubled from $60,000 to $130,000, which is again posing threat to Indian origin IT companies in India. Needless to say, the outsourcing of the IT projects from U.S is also going to be reduced, which will have a direct impact on IT jobs in India.

 

 

The protectionist policies are not only being adopted in U.S but are also surfacing in countries like Singapore, New Zealand, and Australia. The Indian companies which are also grappling with automation, redundancy and other issues are seriously affected by these protectionist policies. The Indian IT sector has an annual IT exports worth $150 billion and it also significantly contributes to the GDP. But the scenario may get affected in the future due to President Trump’s visa and business policies as 60% of IT business in India is from U.S.

 

The off-shore model of business adopted by Indian IT companies is deemed to fail under the present conditions. Indian IT companies are forced to hire local American IT professionals and are compelled to work on site rather than an off-shore model. The overall cost of such IT projects is sure to increase due to increased pay offered to the local American IT professionals and on-site nature of the IT projects. The decreased outsourcing of the IT projects to India will lower the IT job vacancies in India.

 

In India, the practice of hiring more at entry level and less in mid and senior positions in IT sector will be a recurring trend. The IT companies like Wipro, TCS, Tech Mahindra, Infosys, and others have already started scaling down their workforce by significant numbers by giving the pink slip to mid-level and senior level employees. But the companies are picturing the scenario as an annual appraisal activity of weeding down bottom performers. The handsome salaries given to the IT employees are sure to witness chop down. The growth of Indian IT companies is sure to slow down.

 

Indian IT industry has survived against all odds like Y2K, economic slowdown, and other major obstacles. We can surely hope that the Indian IT industry will survive the ‘Trump Effect’ also to emerge as the shining armor of Indian economy.