Virtual team rooms: How Indian IT can get past tougher H1-B visa norms

Analysts say cos may consider local hiring anticipating minimum wage of H1B holders getting at par

IT services companies with strong capabilities in collaboration technology to support clients remotely will be winners in long run, says Paul Gaynor, technology consulting leader, US at advisory firm PwC. 

At a time when the software exporters gear up to tough immigration laws for sending engineers in the US for projects, Gaynor points out, people do not like to fly 18-20 hours to go to work and clients care for the best resource irrespective of location. 

“We have invested a lot of time and effort in collaboration tools (as to) how we can work virtually thousands of miles away and able to share materials in ways that would be almost co-located together. That way of working is really the future. I do not think people really want to jump on planes and travel 18-20 hours to go to work, disrupt the families. We have remote team members, with video and virtual team rooms...that is the type of work you will see going forward,” Gaynor told Business Standard when asked about the challenges towards access to talent for software services firms with tougher H1-B visa norms. 

He, however, stayed away from commenting on the impact of a proposed stringent immigration law or H1 visa norms. 

The technology sector expert responsible for the US, largest export market for Indian IT services market, believes the world is flattened by technology and businesses care for best skills irrespective of where they deliver from. 

“If you are able to provide the best resource to your client no matter where they sit. We should focus on how to get the work done in a world which is flattened by technology ...the collaboration capability is what we should be focusing on and who has built the institutional knowledge around collaboration well will be the winners in the long run.”

Local hiring an option too

Infosys, India’s second-largest software exporter, said it would use collaboration technology to reduce dependency on H1B visas. Companies like Infosys, TCS, Cognizant, analysts say, may also consider local hiring anticipating the minimum wage of H1B visa holders getting at par. 

“We can actually do a large-scale video conference. Next generation collaboration technology can really have a significant impact in how our global workforce comes together and that is an integral part of our strategy to become less dependent on visas over time and become more local in our approach,” said Vishal Sikka, chief executive of Infosys, at a recent press conference. 

Gaynor describes it as “distributed work” and not offshoring. 

Both Pawan Kumar S, partner & technology Consulting Leader, PwC India, and Gaynor say despite the protectionist environment in some parts the industry will continue to bullish on India’s intellectual capital and skills. “I think the intellectual capital that sits in India, its people, skills and the ability to get things done is tremendous. And I have been very bullish on India as a country and its ability to influence the global market. I do not look at it as you have Indian company or US companies, rather as a global footprint. I look at the strength of the workforce and remain very impressed with the capability of the people,” pointed out Gaynor.