Analysts investigated a case over the next few months for more opportunity to work in the field, giving effect to the COVID-19 epidemic and continued travel restrictions.
Madhu Babu, IT analyst at Centrum Broking said, “Border relevance may be lost by Indian IT vendors working on such a massive post COVID-19.”
Offshore revenue of technology service providers is on the rise and the epidemic is expected to drive growth in the coming quarters.
Financial analysts Manik Taneja and Mohit Vyas of MK Global said, “We are once again seeing a shift towards more offshore deliveries than ‘shift authorization’ in sports through the better part of the CY10-20 decade… a weak Given the environment and capacity reset in client businesses due to Kovid-19, we see a case for greater offshoring in the sector in the medium term. ”
He noted that the company’s offshore revenue / volume of Infosys was “making too many claims around localization and increasing onshore revenue / volume despite employing over 10,000 local resources in the US since mid-CY17.”
Analysts also said that the percentage of unemployment in technology jobs is low.
“We should note that although total unemployment in the US is high, unemployment in computer-related jobs is down 2.5%. Also new H1B visas issued this year which were likely to enter the United States (from October 2020) would be very less for Tier 1 IT vendors, ”he said.
Technology industry body NASSCOM has stated that demand for high-tech skills remains strong among employers in the US labor market, even amid the ongoing Kovid-19 crisis. It said that the unemployment rate for computer businesses (the most common among H-1B visa holders) decreased from 3% in January 2020 to 2.5% in May, while the unemployment rate for all other businesses increased from 4.1% to 13.5% in January. Has gone. May.
However, technology sector employees with H1B visa extensions, currently stranded in India, will be affected as they will not be allowed to enter the US until the end of the year.
Aniket Pandey of Prabhudas Liladhar stated that TCS, Wipro and HCLT have stepped up localization efforts in the US and have more than 50% of the local American workforce.
According to analysts, technology companies have made operations successful due to restrictions imposed by the epidemic and will be able to sail through the implications of the current order.
“Companies have been successful in conducting project initiation and knowledge transfer through WFH. We believe T1 IT companies are in a good position to manage supply shortages due to further restrictions on H-1B visas, provided these restrictions are for a brief period, ”said Pandey.
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