"The U.S. president's order on Friday-which requires a $100,000 fee for H-1B applications-will force a rethink at Indian outsourcers led by Tata Consultancy Services Ltd. and Infosys Ltd., who use the program to deploy tens of thousands of engineers across American clients from Citigroup Inc. to Walmart Inc. The two Indian software exporters' shares slid more than 3% on Monday."
"Trump's move is a "geopolitical turf war," said Chander Prakash Gurnani, the former chief executive officer of Tech Mahindra Ltd., who now runs an AI firm. "We're only helping America. And we're helping American companies be more competitive." "In the short run, the next 12 months, there is a shock," he told Bloomberg Television, emphasizing however that TCS and its rivals have in some ways anticipated a longer-term shift away from the U.S. "The business model, and the global delivery model, are changing and we live in a very dynamic world.""
The U.S. president issued an order requiring a $100,000 fee for H-1B applications, affecting deployment of tens of thousands of Indian engineers to American clients. The change pressures major Indian outsourcers such as Tata Consultancy Services Ltd. and Infosys Ltd., whose shares fell more than 3%. The H-1B-driven model helped build a $280 billion Indian IT industry and underpins technology for many large global corporations. Industry leaders describe the move as a geopolitical turf war and predict a short-term shock over the next 12 months while noting longer-term shifts in global delivery models.
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