TCS: India outsourcers must adapt to tighter visa restrictions

Summary:As countries such as United States, Canada, and Australia introduce new laws that make it harder to hire foreign skilled workers, India's biggest outsourcer TCS has said the industry must change their business models.

India's biggest outsourcer TCS said the industry must change its business model to account for global policies which can make it harder to hire foreign skilled workers.

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TCS CEO N. Chandrasekaran said last week that India's IT services industry must adapt to tighter immigration policies in developed nations, according to a report last week in The Economic Times.

"It is happening not just in the U.S., in Canada, there is a discussion, and in Australia there is also a discussion. So, we just have to be receptive of those situations and engage in the whole process and then see what changes we need to make to our business model as and when it is required," Chandrasekaran said.

The U.S. Congress is considering new laws that would penalize companies using the H-1B skilled worker visa to employ more foreigners than locals. These conditions would affect Indian outsourcing companies, such as Infosys, TCS, and Wipro, whose business models rely on importing cheap foreign workers to perform low-level IT functions.

Chandrasekaran said the trend has not affected current outsourcing spend. 

Topics: Outsourcing, India

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Mahesh Sharma earned his pen licence in his homeland, where he covered the technology industry for ZDNet, SMH, Sky Business News, and The Australian--first as an FTE, and later as a freelancer. The latter fueled his passion for startups and empowered a unique perspective on entrepreneurs' passion to solve problems using technology. Armed... Full Bio

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