Tag: Indian IT

New Tax in US could Cause Trouble for Indian IT Industry | In the News

When a tax of this scale is paired with visa reform which if implemented in its most aggressive form would raise the landed cost of the Indian firms by as much as 20% and an “American first” political climate we can see a substantial attack on the current model which is indeed worrying to every Indian Service executive. I would stress that the boarder tax has the most uncertainty around it at this time as it faces substantial resistance in both parties,” said Peter Bendor-Samuel, CEO, Everest Group. Read more at the Economic Times.

IT Sector Growth to Fall to 5.3% in 2017: DeepDive/Everest Group IT Services Forecaster | In the News

US-based DeepDive/Everest Group It Services Forecaster has forecast a 6.3% growth in constant currency for the top five Indian companies for the 2017 calendar year, a 2.4 percentage points drop from the 8.7% growth in 2016.

For the sector as a whole – including large, medium and small IT firms but excluding MNC captive centres – the growth in 2017 is expected to be a mere 5.3%. That’s a steep drop from the 8-10% that the industry is expected to do, as per IT industry body Nasscom, in the 2017-2017 fiscal year (Nasscom estimates include the contribution of MNC captive operations).

Read more at the Times of India

IT May Struggle to Maintain Higher Margins as Uncertainty Looms Large | In the News

The $108 billion Indian IT services industry is bracing for tough times ahead as potential visa restrictions add to their troubles such as a shift towards automation and pressure on margins in traditional services. Technological disruption and faster-than-expected adoption of technologies like artificial intelligence, robotics and the cloud platform are other major challenges for the industry.

Read more at the Business Standard

As Automation Deletes Jobs From Indian IT Sector, ‘Reskilling’ Becomes A Major Focus Area | In the News

Peter Bendor-Samuel of consulting firm Everest Group estimates that 80% of offshore IT jobs and 30%-40% of finance and accounting jobs in India will be eliminated by robotic process automation, which is the application of technology to process a transaction and carry out other tasks.
“Across almost every service, we see the impact as eliminating between 30% and 80% of the full time equivalent working in the Indian services industry. We believe that it will take at least 10 years for the industry to reach the upper bounds of this range, and this adoption will shrink existing legacy book of business 3% or more this year,” said Bendor-Samuel.

Obamacare Repeal could Hurt Indian IT Industry | In the News

The US is the biggest outsourcing destination with companies like Tata Consultancy Service, Infosys, Cognizant Technology Solutions and Wipro dominating this space.

Two years ago, a report quoting research firm Everest Group said US healthcare related contracts were expected to more than double to about $68 billion in 2020, from nearly $31 billion two years ago, largely due to Obamacare.

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