H 1-B suspension calls for an increase in the offshore IT consulting services.
Life is unpredictable and everything else follows second to that. Who knew that the entire globe would be surfaced with the Covid-19 pandemic? The economies have fallen apart giving a set back to the full-time office jobs. Worsening the situation, the suspension of the H1 B visa till the year-end has left the employees jobless and companies without full-time employees for IT solutions. The only light to the fact is that it has increased the offshore IT consulting services.
H1B visa suspension-a situation of benefit for offshore IT consulting service companies. Why?
Good for the offshore IT consulting services. Isn’t it? Let us look at the reason how will the situation help:
- Scarcity of local talent in the US.
There is a lack of highly skilled talent in the US. This calls for the companies to look outside their domestic boundaries and find skilled potential here in our country. This is the major reason why companies in the US will look for foreign talent. The flexibility is expected to rise which is going to be great for the Indian IT firms.
- Trust for the Indian talent.
Offshore companies still trust Indians for their services. They know that the talent of Indian origin delivers the best in critical circumstances. We have various companies that offer quality IT solutions that range from website development to maintenance.
- Affordable services by offshore IT consulting companies.
Offshore IT consulting companies offer their services at an affordable rate. It is way too less than what the company would have paid in the US. In the current scenario, when travel is restricted and the H1B visa is rejected, the option for the companies to get going is to choose services from offshore IT consulting companies.
- Macro Environment and the market conditions in the US.
In the present pandemic crisis, the macro environment is weak. The situation in the US has deeply impacted the markets. The businesses may take time to resume and hence the offshore IT consulting companies may look for greater offshoring here in India.
- Declining Revenues.
Some businesses might have suffered a loss due to the less potent market. The situation has affected revenues. The push to bring everything to normal can influence business houses for offshoring to India.
- Work-from-home is the new normal.
The world knows especially the companies in the US that work from home has turned out to be advantageous. The businesses are observed to have saved money on different other expenses. Hence, the relevance of the Indian IT vendors ought to rise. Eventually, it will not matter whether the service provider is of the domestic origin or offshore.
- Investment in technology will be the next new gig.
To recover from the corona impacted world, the companies are going to invest to upgrade the technology. The IT sector will be the major source of attraction that will fetch us some jobs too. And to win the competition, different sectors in the US majorly IT are anticipated to ask for offshore services dedicatedly from India.
- The decrease in visa issuance over the last few years.
With the recent change in the guidelines of the issuance of the US visa, there was an increase in local hiring in the US. Indian faced a tight clutch on the procurement of the IT skilled Indian candidates over the last few months. According to a report by a domestic rating agency, the final suspension of the H1B visa will cost the Indian firms Rs.1200 crores. But at the same time, the offshoring is destined to rise to leave offshore IT companies in good shape.
The decision of the suspension of the H1 B visas was disliked by the Indian tech companies as that has left their talents without any jobs. But as the situation clears further, the offshoring is on the rise. The IT consulting services companies may only be to strongly support those who run their business in the US.