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Showing posts from February, 2017

Trump - Blessing for India

There are numerous reports of the Trump administration banning H1B visas for professionals. Market reacted sharply and a billion dollars worth of market cap was wiped off. Trump's policy of ' Hire American, Buy American' is also likely to scare away students. While Trump may think his policies are helping America, he has ended up doing a big favour to Indian IT industry, families and our country at large 1) IT Services companies took off in the 90s on the value proposition of cost arbitrage i.e. shipping skilled Indian engineers at 25% of US costs and milking huge margins. This was called 'body shopping'. This was followed up with the 'Onshore-Offshore' model i.e. have only small teams at customer locations in the US which gets worked done by a large offshore teams in India. Margins increased and so did employment in India. As large US multinationals setup their own base in India, this model is now falling apart. IT Services companies are looking for a ...