US market a 'wild card' for Indian IT: Nasscom president Rajesh Nambiar

United States, the largest market for the $282 billion Indian IT sector, is a "wild card" for the industry, lobby grouping Nasssom's president Rajesh Nambiar said on Monday.

Speaking to reporters Nambiar said the tariff threats by the US may turn out to be the biggest headwind for the sector. 

"Broadly, if you were to look at the headwinds, the biggest unknown there would be the tariffs and the impact of what happens in the US market," Nambiar said.

He was quick to add that one should not forget that the US contributes 60-62 per cent of the revenues for the sector.

 

"It is a bit of a wild card at this point of time. We do not know what is going to be in store," Nambiar said.

It can be noted that since assuming office on January 20, President Donald Trump has threatened to impose reciprocal tariffs with the intent of strengthening the American economy.

Speaking at Nasscom's annual NTLF event earlier in the day, the country's second largest IT services exporter Infosys' chief executive and managing director Salil Parekh said the Indian IT sector should not fear the Trump impact.

He reasoned that if American companies benefit as a result of the measures being undertaken by the Trump administration, it should benefit Indian IT companies, if the clients become stronger.

Parekh said Infosys has built a "resilient" business in the US over the last few years, through a slew of measures including upping the local hires to 60 per cent of its US workforce which reduces the reliance on the H-1B visas.

It has also built near-shoring capabilities, which is also of help to the company to continue serving clients, Parekh said.

HCL Technologies chief executive and managing director C Vijayakumar said H1-B visas are a smaller issue for the Indian IT sector and used to be important two decades ago.