From Infosys to Wipro, US visa rules start to pinch Indian IT companies

Companies see spike in subcontracting costs, attrition; talent shortage leave client projects unfulfilled

Uncertainties around US visa norms seem to have started impacting the efficiency of the Indian IT service firms if the September quarter (Q2) numbers of some are considered. 

In Q2, Infosys, the country’s second-largest IT services company, saw higher on-site costs as well as attrition, while Hexaware, a mid-sized IT services company, said it could not fulfil clients’ demands in the US as the company didn’t have enough number of employees with US visa. Hexaware said getting subcontractors within a short notice was also a challenge. 

Even Wipro, which has a significantly higher percentage of local employees in the US,