Shipping talent is a dead model for IT: Sandeep Kishore

IT services firms need a hybrid model of Indian & US experts to solve complex issues," said Sandeep Kishore.

- Economic Times

Bengaluru: IT services sector’s time-tested model of deploying Indian talent for projects onshore is no more relevant as immigration issues are real in the US, said Sandeep Kishore, CEO, Zensar Technologies NSE 0.27 %

The IT services industry executive believes the model of building a business by sending technology talent from India is “dead” and despite India’s disproportionate advantage in terms of talent among other English-speaking countries, IT services companies need to have a hybrid model of Indian and US experts to solve complex problems.

“The immigration situation is a real situation (in the US). You really cannot build a business by shipping people. That is a dead model. You got to create local capacity,” Kishore told ET in an interview. The $180-billion Indian IT-BPM industry and its global counterparts have seen increasing protectionism primary in the US, the largest software services export market. Even though changes to the legislation pushed by the US administration has not come into force, there have been tightening of H-1B visa issuance process such as repeated request for evidence (RFEs).

In the past couple of years, Indian firms such as Tata Consultancy Services, Infosys NSE 1.22 % and Wipro NSE 0.73 % have ramped up local hiring in the US and have begun extensive training for the local hires on the back of increased protectionism.

“I don’t think the immigration scene is going to dramatically change... We have to get ready by driving a combination of higher technology (technology to collaborate with offshore), local hiring, M&A,” said Kishore.

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