Republican candidate Donald Trump just two days ago during his election rally had strongly criticized technology giant IBM for laying off 500 staffs working at Minnepolis located on mid-western US state of Minnesota. During his rally, Trump also had said that if he gets elected, his government will not allow companies like IBM to move jobs outside the US and they would have to pay 35 percent tax for developing products outside the US.
Sanchit Vir Gogia, Chief Analyst & CEO – Greyhound Research has a different but positive take on the new US Presidential in context to Indian IT industry.
In his view the new US President doesn’t necessarily spell trouble for Indian IT firms. “Instead, at Greyhound Research we believe Trump’s first focus will be on manufacturing jobs, hence China,” said Gogia but also added that, Indian IT firms will not remain completely insulated.
“BPO and call centre jobs requiring relatively lower IT skills – also the prime candidates for automation by the way of bots – can expect to be affected in square focus. At the same time, better skilled jobs including coding and maintenance are likely to remain unaffected given their scarce availability and exclusivity,” Gogia pointed out some positives that favours the Indian IT sector.
Further, he said that it’s also important to remember that most Fortune 500 companies rely on Indian IT service providers or global system integrators with India-based locations for IT support and maintenance.
“Albeit Donald Trump can be expected to put onus on visa restrictions over the coming years, no short-term changes are implied or plausible,” Gogia observed.
Source: Economic Times