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The National Association of Software and Services Companies (Nasscom) on Friday sought to dispel apprehensions about the damaging prospects of the new US immigration Bill.
The Bill has apparently proposed restrictions on issuance of H-1B visas to Indian companies.
“Such visas will not be any show-stopper in this era of technology,” CP Gurnani, Chairman, Nasscom and MD of Tech Mahindra Ltd, told reporters here on the sidelines of the Nasscom Product Conclave organised here in the city.
According to him, in this age of technology, companies need to use tools to get products and services delivered. And hence American companies and the US Senate can be at odds at each other.
“The US corporations realise that 70 per cent of their work was being outsourced from outside,” he said, adding that visa costs were also moving up.
Nasscom, Gurnani said, would appeal to the US administration, adding that it would be business as usual post the US Presidential elections. “It is in their interest to buy technology,” he said.
According to Nasscom, 65 per cent of India’s IT revenues originate from the US, while close to 20 per cent is from Europe, including the UK.
Brexit impact Asked about the possible impact of Britain’s exit from the European Union, Gurnani pointed out that Indian IT firms will feel some impact in the short term, though they won’t be “hurt” in the medium-term. The pound, he pointed out, will continue to remain weak. “If the stock markets are an indication, the (Brexit) damage is not that deep. We have got to watch the indicators. And the currency will remain weak,” he said.
“We now live in a connected world. The new British PM will be a lot more moderate in negotiations with the EU and vice-versa. There may be some short-term impact in India (because of Brexit). But in the medium term, it will not hurt India,” he added.
SEZ importance Gurnani sought to downplay the need for companies seeking SEZ status to start operations in the country. “Two years ago, it was very important. But things have changed now,” he said.
More important were matters such as creating centres of excellence.
His comments gain importance what with the Mamata Banerjee-led West Bengal government opposed to granting of special economic zone status to proposed campuses of IT majors such as Infosys and Wipro.
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