Infosys Technologies, India's second-largest IT services is considering an `extreme offshoring' model towards reducing its dependence on H1 and L1 visas under conditions of clampdown of Visa by the US and the rising instances of antagonism towards the immigrants and foreign workers. The model is expected to have a far flung impact in delivering IT services as this might lead to a greater generation of jobs onsite and more job creation in countries like India. The Front-end sales and support jobs would require support from the US citizens.
The Bangalore headquartered company had recorded a revenue of Rs 10,461.32 crore, or 46.7 out of its onshore operations and revenues of Rs 12,121.5 crore, about 53.3% out of its offshore operations and mentioned that the company can increase its offshore utilization capabilities to around 95 per cent. The main intent is to prepare the company if negative sentiments intensify further.
Pilot programmes have already been conducted by Infosys with a couple of clients in the US and the model has already been proven by them. This facilitated the easy transition of outsourced projects to India from its remote offshore locations.
Speaking on the matter, Gopalakrishnan added, "The technological capabilities for extreme offshoring is already there with us. You have video conferencing, which allows you to be there virtually, rather than in person, and the quality of video conferencing is extremely high today, with the availability of technologies like telepresence."
Speaking in these lines, CEO and MD, Infosys Technologies, Kris Gopalakrishnan said, "There is a cost element (due to the visa fee hike) to what is happening now and there is a philosophical or directional element. The cost is no doubt increasing, but it is manageable. But it is more about what it indicates. If there a build-up of negativity in sentiment, we have to prepare ourselves (for extreme offshoring) if need be. However, as long as unemployment remains high, the negative sentiment will continue, unfortunately."
The IT industry sends the people to US on H1 & L1 visa's on a temporary basis to gather information on client's business requirements and readying the framework before the work is shifted offshore. This helps to transition clients work to India smoothly.
The Visa application fee will be doubled by US border security legislation targeting the Indian IT services industry. Speaking on the matter, Gopalakrishnan said, "As long as globalisation is not reversed or stopped, I think the growth of remote delivery of services should continue. And it's an opportunity for countries like India and China."