Friends
We have been through a difficult month of August. The bill introduced by Senator Schumer and passed into law this month imposes an additional fee on every new visa and visa renewal application by companies who have less than fifty percent Americans in their workforce in the United States. By itself the additional financial burden does not make any significant dent on the profitability of Indian firms operating in the country, particularly when many of us have a predominantly offshore delivery model and are in the process of localizing the composition of our workforce, not just in the US but in every country in which we operate. However the discriminatory nature of this bill which drives a clear wedge between US multinationals and the Indian firms cannot be ignored and has caused alarm bells to ring! An article in one of the premier US newspapers has argued that this is a case of “no bad idea left behind”, since it will put in question the value of expanding operations in the US, resulting in the loss of potential jobs that were being created at a steady clip post the recession by all Indian companies !
The reality, as always lies between the rhetoric and the unpalatable option of total capitulation. Indian firms can and should continue their aggressive investments in the US – acquisitions, new offices and delivery centers and investments in technologies and methodologies that accelerate global sourcing capabilities. Firms should develop enhanced consulting capabilities in the domains of global customers to enable new enterprise solutions to be designed and delivered to all customer segments. However there is also a need to diversify the geographical footprint of the industry on an accelerated basis to ensure that random and often unpredictable acts of omission or commission that could come in the way of growth of the industry in a specific market does not cause doubts about the ongoing potential of this industry as it continues to champion the cause of global sourcing in the years to come. The rapid growth of China, Australia and South Africa as markets and development bases, the emergence of Brazil and Chile in Latin America and the potential of Saudi Arabia and other strong MENA territories – all these present new growth opportunities that need to be understood and tapped.
It is hoped that the Indian Government will use its proximity to the US Administration to educate everybody with the statistics on job creation and enhanced competitiveness of American multinationals and Silicon Valley startups that are the proven contributions of the Indian tech sector. Far from being “chop shops” or “body shops” or even “multinational temp agencies”, which were some of the allegations made in the US Senate, Indian firms, through the focus on quality and innovation are adding value to all firms, industries and states in the US that we are working with. The confidence that all of us have in the resurgence of the US economy and its ability to continue to contribute over thirty percent of global GDP will ensure that there is continuing investments in the US – let us hope for a suppportive environment
Ganesh
