Indian Tech sector badly Hit as New H1B causes uncertainty

IT firms all over like Infosys. CTS, Tech Mahindra have all announced redundancies this year and analysts predict that there may be massive restructuring as well as a string of layoffs expected this year which may continue for the coming two years. The companies are planning massive level restructuring that is taking the world by storm and both employees as well as industry analysts are worried about the future of the sector.

The h1b sponsorship will also come down as the industry wants local hiring in more numbers.

A recent report also suggested that at least 200k people who are in software are expected to lose their jobs over the next three years and according to local media reports h1b sponsoring companies and tech giants like Infosys, CTS etc. had plans to lay off senior level employees bases on the performance and the company also has plans to recruit at least 10K local Americans over the next two years a move which analysts say that will please the new president.

This seems to be a natural process for Indian IT to expand as well as strengthen their client offerings in the market as most of their businesses come from US based client. This will directly benefit the US workers who already are singing to the tunes of Trump’s America First strategy that are aimed at curbing immigration that too around the most sought-after US H-1B visa policy that is more likely to hurt the Indian IT sector that also forms a sturdy base in the country’s economy.

Indians account for nearly 70% of all the beneficiaries of the H-1B visa program and hence the president’s decision is to steer away this crowd and his new policies are sure to hurt Indian professionals as well as Indian software companies. Many are arguing that it does not seem like Indian firms are laying off in India so that they can hire in US but the sector in general is seen to be struggling as these companies have been giving very poor as well as disappointing earnings since a few quarters which has been the primary driver.

There are chances of greater automation and a shift from more mundane programming’s jobs as well to jobs that require more higher levels of engineering skills in artificial intelligence, machine learning as well as newer fields. When this happens the benefit of cost savings by hiring in cheaper nations is most likely eclipsed by skill requirements. That is the main reason where product based companies are not outsourcing most of the jobs to India as they have most of, many of workers in US.

There is skills shortage in India for these types of complex jobs and though there are lot of engineering students who are graduating. they are not highly qualified and may not able to handle the skillset that is required. Though the ground reality of massive downsizing is there, it has a hurtful impact on the morale of employees. Though performance based appraisals are happening every year, this year many are feeling the heat and everyone is bit concerned about their jobs. For H1B related job alerts go to



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