Why one company is investing in rural America instead of offshoring jobs https://t.co/zPVaqV9jIm ...

Why one company is investing in rural America instead of offshoring jobs https://t.co/lfXpBwXUlD ...

Why one company is investing in rural America instead of offshoring jobs https://t.co/I2tYohGbGv ...

Why one company is investing in rural America instead of offshoring jobs https://t.co/M0qQ3xUphF ...

RT Alb (@amandalouise416)🚨 Made in America, moved to India🚨After Indian CEOs took charge: Satya Nadella at Microsoft (2014) and Sundar Pichai at Google (2015), both companies began the same transformation:💼 A full onshore–offshore labor model🇮🇳 Billions in investments redirected to India🏢 Rapid expansion of India-based hubs and data centers📉 Ongoing decline of the U.S. workforce shareWhat starts as an Indian CEO in a U.S. company soon evolves into a U.S. tech company shifting to India under Indian leadershi ...

By Aditya Soni and Echo Wang SAN FRANCISCO/NEW YORK (Reuters) -The Trump administration's hefty new visa fees for H-1B workers have prompted high-level talks inside companies in Silicon Valley and beyond on the possibility of moving more jobs overseas - precisely the outcome the policy was meant to stop. U.S. President Donald Trump on Friday announced the change to the visa program that has long been a recruitment pathway for tech firms and encouraged international students to pursue postgraduate cours ...

Core Viewpoint - Wall Street banks are expected to increase reliance on their Indian business support centers due to new fees imposed on the H-1B visa program, which could lead to a deeper presence in Indian tech hubs [1][3][9] Group 1: Impact of H-1B Visa Changes - The new $100,000 fees on H-1B visa applications may drive banks to expand operations in India, particularly in cities like Mumbai, Bengaluru, and Hyderabad, which already employ over 1.9 million people [1][3] - Indian-born workers represented 72.3% of all H-1B beneficiaries in the US fiscal year ending September 2023, highlighting the significance of this visa program for the tech and finance sectors [4] Group 2: Growth of Global Capability Centers (GCCs) - The GCC market has reached a value of $64 billion, with an annual growth rate of approximately 9.8% projected from 2019 to 2024, and is expected to grow to $110 billion by 2030 [5] - The number of GCCs is anticipated to increase from 1,700 to as many as 2,500 by 2030, indicating a robust expansion in this sector [5] Group 3: Employment Trends in US Banks - Major US banks like Citigroup, Bank of America, and JPMorgan Chase are significant employers in India, with Citigroup employing around 33,000 staff, Bank of America over 27,000, and JPMorgan 55,000 [6] - A study indicated that companies often hire more staff abroad in response to restrictions on skilled immigration, suggesting that banks may adjust their strategies accordingly [7] Group 4: Strategic Adjustments and Future Outlook - Banks are likely to recalibrate their strategies for GCCs, potentially adding new job functions in India, but will wait for more clarity on the evolving situation [7] - The new H-1B restrictions are expected to accelerate India's role as a hub for critical business functions, compliance, technology, and innovation for international banks [9] - Despite the potential for expansion, uncertainty regarding further US measures may temper banks' global strategies [10]

H-1B visas also see significant usage from financial and consulting organisations. (AI image)Despite Trump's intention to safeguard American employment through immigration restrictions, analysts suggest these new regulations might encourage banks to strengthen their presence in Indian technology centres like Mumbai, Bengaluru and Hyderabad, which currently provide employment to over 1.9 million individuals.H-1B visas, extensively utilised by technology sectors in India and the US for skilled foreign workers ...

(Bloomberg) -- Wall Street banks are set to rely more on their Indian business support centers following President Donald Trump’s shock move to impose $100,000 fees on new applications to the widely used H-1B visa program. US lenders including Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc. are among the biggest employers of India’s so-called global capability centers, which handle operations from trading support and risk management to tech assistance. Staffed with software engineers, qu ...

Core Viewpoint - Indian tech stocks are experiencing a decline due to concerns over the new $100,000 fee for H-1B visas imposed by the US government, which may disrupt operations for major outsourcing firms like Tata Consultancy Services (TCS) and Infosys [1][2]. Group 1: Market Reaction - TCS shares fell by as much as 3.4%, Infosys by 3.9%, and Tech Mahindra by 6.5%, marking significant declines for these companies [3]. - Most stocks later reduced their losses as analysts suggested that the fee increase applies only to new visa applications, indicating a limited impact on the sector [3]. Group 2: Analyst Insights - Analysts from JM Financial believe that large IT companies will likely increase offshoring, which would mitigate any financial impact from the new visa fees [4]. - The IT services sector has already faced challenges, with a decline of over 18% this year, contrasting with a 6.5% gain in the NSE Nifty 50 Index [5]. Group 3: Impact on Smaller Firms - Smaller IT companies may face greater challenges due to a higher dependency on H-1B visas compared to larger firms, which have been reducing their reliance on these visas [6]. - Shares of LTIMindtree and Mphasis fell by approximately 6% each, reflecting the heightened vulnerability of smaller firms [6]. Group 4: Pricing Strategies - Companies may need to adjust their pricing strategies, either by offering more expensive onshore consulting services or cheaper offshore programs where most work is conducted outside the US [7]. Group 5: Long-term Outlook - Analysts from Citi noted that companies like HCL Technologies and Infosys have a significant portion of their US workforce that is visa-independent, which may lessen the impact of the new fees [8]. - The full effects of the visa fee changes are expected to become apparent starting in fiscal year 2027, with potential offsets from increased outsourcing to India and reduced outflow of Indian students studying abroad [8].