The survey, tabled in Parliament today, said the Indian USD 150-billion IT-BPM industry is “feeling the pinch” of the global slowdown and political uncertainties as clients go slow on decision-making and investment processes.
“Misconstruing mobility of skilled people as immigration issue is a deterrent to the growth of this global business resulting in many barriers to free movement of skill and data in the major markets,” it said.
The survey cited examples of countries like the US, the UK and Australia that are undertaking various reforms in their work visa programmes to protect the interests of the local workers.
Also, the EU has introduced ‘Data Protection and Privacy Rules’ that effectively prevents Indian companies from providing services from India, while the US has been given safe harbour status, the survey noted.
The survey also highlighted the increasing competition that India faces from new “digital only entrants” from Eastern Europe and Latin American countries, including newer companies like Globant, EPAM, and Luxoft.
It said while Indian IT services companies were the “disruptors” and had created the modern offshoring industry, they are now incumbents, challenged by a host of specialised and niche startups that have emerged in the new digital environment.
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