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Tata Consultancy Services: US immigration bill poses problems for IT players

The software major says companies need to be receptive to the situations in any market.

Written by PTI | Mumbai | Published: July 19, 2013 11:37:33 am

With the new US immigration bill posing long-term cost implications for the IT players,the country’s largest software exporter Tata Consultancy Services (TCS) today said companies need to be receptive to the situations in any market.

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“….there is an unemployment issue. Job growth is a major issue being faced by many nations. So you are seeing regulatory changes or discussions,dialogues about regulatory changes…,” company MD & CEO N Chandrasekaran told reporters

at the earnings announcement.

“It is happening not just in the US. In Canada,there is a discussion,in Australia there is also a discussion. So,we just have to be receptive of those situations and engage in the whole process and then see what changes we need to make to our business model as and when it is required,” he said.

The US immigration bill proposes several changes including higher visa costs and increase in wages for H-1B visa holders. It will hurt the over USD 100 billion IT-ITES industry in the country and domestic software firms like TCS and Infosys as their cost of operations could go up.

In June,the Senate approved the most far-reaching reforms to U.S. immigration policy in 50 years.

Chandrasekaran said TCS is “extremely engaged” in all the countries it is present in. “We will do anything that we need to do in order that we have a very effective and agile business model,” he said.

Asked if clients had expressed concerns around these proposals that could impact cost and the model of delivery of services for Indian outsourcers,Chandrasekaran answered in the negative.

“There is no impact on client spend (because of the regulatory changes). They today understand the environment and are working with that… There is no finality… So we all have to wait to see how it (Immigration Bill) will proceed and take actions appropriately,” he said.

Australia recently tightened its work visa programme with changes to the 457 visa programme (for skilled immigrants) that requires companies to prove that they have considered local hires and advertised in newspapers before sponsoring workers from outside of Australia.

Similarly,Canada is also taking steps to ensure that only genuine skill shortages are being filled by temporary overseas labour.

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