Highlights of Trump orders on H-1B visa norms and what it means for India

Source: Business Standard, Apr 19, 2017

New Delhi: While on a visit to the headquarters of Snap-On Tools in Kenosha, Wisconsin, the US President Donald Trump ordered an interdepartmental review of the H-1B visa program on Wednesday. Buy American Laws – has one policy – Buy American, hire American and NEVER ever replace an American worker. Trump’s long-awaited executive order drew sharp reactions across the globe. Change in H-1B visa norms could affect companies, such as Tata Consultancy Services Ltd , Cognizant Tech Solutions Corp and Infosys Ltd , that connect US technology companies with thousands of foreign engineers and programmers. Read the rest of this entry »

IT ministry to promote digital transactions

Source: Business Standard, Feb 16, 2017

New Delhi: The works relating to promotion of digital transactions will be looked after by Ministry of Electronics and Information Technology (Meity), according to the new rules.

President Pranab Mukherjee has given nod to change government of India, Allocation of Business Rules, 1961, to delegate work of “Promotion of Digital Transactions including Digital Payments” to the Meity, an order issued by Cabinet Secretariat said.The Ministry is tasked with promotion of e-governance for empowering citizens, promoting inclusive and sustainable growth of the electronics, information technology and information technology-enabled services industries, enhancing efficiency through digital services and ensuring a secure cyber space.

The central government is emphasising upon digitalpayment, especially after demonetisation of old Rs 500 and Rs 1,000 notes and taking many steps in this regard.

The Union Cabinet chaired by Prime Minister Narendra Modi had in February last year given its approval for introduction of steps for promotion of payments through cards and digital means. The move aims at reducing cash transactions.

“Promotion of payments through cards and digital means will be instrumental in reducing tax avoidance, migration of government payments and collections to cashless mode, discourage transactions in cash by providing access to financial payment services to the citizens to conduct transactions through card or digital means and shifting payment ecosystem from cash dominated to non-cash/less cash payments,” according to an official press release issued then.

The Centre had in December 2016 decided on a package of incentives and measures for promotion of digital and cashless economy in the country.

 

Government IT spending in 2017 to grow 9.5% to US$ 7.8 billion

Source: LiveMint.com, Feb 14, 2017

New Delhi: The government in India is forecast to spend $7.8 billion on information technology (IT) in 2017, an increase of 9.5% over 2016, according to IT researcher Gartner Inc. This forecast includes spending on internal services, software, IT services, data centre systems, devices and telecom services. Government comprises state and local governments and the central government.

The software segment includes enterprise resource planning , supply chain management, customer resource management, desktop, infrastructure, vertical specific software and other application tools. The software segment is expected to grow 15.7% in 2017 to reach $1 billion. Desktop will be the fastest growing segment with 16% growth in this category.

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Tough 2016 for IT, tougher year ahead

Source: Business Standard, Dec 29, 2016

Bengaluru:For India’s export-focused software services sector, 2016 was a tough battle.The information technology (IT) sector had to reduce growth numbers for only the second time in a decade, the first being after a US  recession triggered by the Lehman Brothers collapse. This time, they faced challenges due to automation and shifting investments in digital, the UK’s exit from the European Union and an unexpected victory for Donald Trump in the US presidential election.

The biggest shift has been in the growth of digital, which Indian firms are struggling to grapple. Services on digital technologies — software that work seamlessly, with better user interface, on devices such as smartphones — is growing. However, the business needs experts working with clients at their locations in the US and UK. This is in contrast to the existing business models of IT entities, where they locate eight out of every 10 staffers, leveraging the cost arbitrage to deliver services or maintain servers remotely for global customers.

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IT companies eye $116 billion contracts in 2017

index.jpgSource: The Economic Times, Dec 13, 2016

BENGALURU: Indian IT services companies have been steadily increasing their share in global IT outsourcing. Now with $116 billion worth of IT contracts coming up for renewal in 2017 and the growing trend towards splitting up large deals, they can look forward to some more gains in the coming year.

Of the $116 billion, the top five Indian IT services providers account for $20 billion, the big five American companies (IBM, Accenture, CSC, HP , Xerox) account for $29 billion, and the top four European firms (Capgemini, Atos, BT, T-Systems) account for $17 billion. The remaining is split among a host of other smaller global and Indian providers, according to data from IT advisory firm ISG.

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Govt unveils National Software Policy, eyes 3.5 million jobs by 2025

Source: LiveMint.com, Nov 28, 2016

New Delhi: The government has issued the draft of first ever National Software Policy with an aim to increase share of Indian software products in global market by 10 fold to estimated $148 billion and create employment opportunity for 3.5 million people by 2025.

The policy will “strive for a tenfold increase in share of the global software product market by 2025 by promoting easy access to local domestic/international market for software product” and “create 3.5 million direct and indirect jobs by 2025”, the draft said.

The software product industry is estimated to be $411 billion globally today and is expected to reach around $1 trillion by 2025. “However, in India the software product industry is still in its infancy stage. The total revenue of software product industry in India is $6.1 billion, out of which $2 billion is from exports,” the draft said.

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Indian IT sector growth forecast lowered on Brexit, Donald Trump

Source: LiveMint.com, Nov 17, 2016

New Delhi: India’s software services industry will grow at a slower pace than estimated earlier as events such as Donald Trump’s victory in the US election and Brexit weigh on exports, industry lobby group Nasscom said on Wednesday.

Nasscom now expects information technology (IT) exports to grow between 8% and 10% in the year ending 31 March, slower than the 10-12% range it had predicted in February, the industry lobby group said.

Indian IT exports are likely to be $116-118 billion instead of the earlier estimate of $119-121 billion.

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