IT Outsourcing company-Understanding the Implications of the Latest Anti-Outsourcing US Bill - By: Annie Brunson

The US Senate recently unanimously voted and passed an anti-outsourcing bill. The bill is aimed at foreign companies that hire and fly in workers at various locations in US, and have more than half of their America-based employees on HIB work visa. Once the bill comes it effect such companies will have to pay more visa processing cost for America- inbound techies. This will definitely affect a large IT outsourcing company like Infosys, which sends many techies to various projects in America.

The large Indian software companies like Infosys, Satyam, TCS and Wipro will be hurt the most as they will have to dramatically increase the spending to send the their workers to onsite projects in America. However the American companies like Microsoft that import techies from outside US will not be affected because majority of the worker are American and very small proportion of foreign workers are hired. This is seen as discriminatory by the Indian IT outsourcing industry because it singles out the India software companies for the American financial woes. The rising unemployment and growing anti-outsourcing sentiment amongst Americans has pushed the Senators to pass the bill.

The American economy is painfully trying to shake off the recession aftermath and with US employment rate hovering around 10%, the politicians are looking for solutions. Targeting outsourcing companies won’t help in their cause to create more jobs for Americans. A giant IT outsourcing company like Infosys won’t be affected too much by this law keeping in mind its staggering $1.3 billion dollars earning in the recent fiscal year. A large IT outsourcing company can also work around this law and reduce its staff strength in US and correspondingly increase its offshore development.

The struggling economy will ensure that American business will continue to rely on the outsourcing to cut their business costs. IT outsourcing company offers plenty of benefits to the American businesses. It takes out infrastructure and manpower costs from their businesses and allows them to concentrate more core business and increase their competency levels. Even if the large outsourcing companies reduce their presence in America, the American business will find American staff very expensive compared to cheap but skilled services of their Indian counterparts.

This move will benefit the outsourcing SMEs who will get opportunity to increase their share of the outsourcing pie that American businesses offer. With lesser number of techies flying out to US there will be shortage of skilled personnel there and this in turn will increase the software outsourcing from the US. At same time the American businesses will benefit from this move because they will be better served through more inventive IT solutions at a very competitive pricing. The competition between Indian software SMEs will heat up and result in better bargains for the American businesses.

It will be very hard for American businesses or politician to get rid of the outsourcing because of the plentiful benefits that it brings to them and their economy. On other hand the software outsourcing companies should hire more number Americans and address this burning issue effectively from their own end.

About the Author

Tatvasoft is one of the leading IT outsourcing company that provides one-stop IT solutions to its world-wide clientele.

Article Directory Source: http://www.articlerich.com/profile/Annie-Brunson/100329

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