- Globally Speaking
- IGB Boardroom
- SIGN UP
Indian IT companies help US companies retain their global competitive edge. This is just one reason why it must roll back visa curbs on Indian IT professionals, argues 'India Global Business'. The trickle of bad news buffeting the Indian IT sector is slowly gaining critical mass. Infosys, Wipro and Cognizant, three leading software exporters, have cut their annual revenue guidance to 8.4 per cent from 12 per cent, citing macro-economic factors such as falling ticket sizes of deals, Brexit and a frustrating inability to scale up the skill sets of their workforce. Then N. Chandrasekaran, CEO of TCS - India's largest software company and exporter, has warned that the company's second quarter numbers could be hit. Now, Nasscom, the apex body of the Indian IT sector, has revised its annual revenue growth target to 9 per cent from 10-12 per cent it had forecast at the beginning of the year. The reasons are the same across the board. In addition to the ones mentioned above, the factors at play include the failure of these companies to move up the software services value chain with a differentiated business model despite a concerted effort in this direction. The worrying fact is that a substantial portion of their revenues still comes from relatively lower end work, which give steady margins but can no longer generate high levels of growth for the $146-billion Indian IT sector.
|Why easier visa norms are important