Indian IT service provider Wipro fears decrease in business due to Trump’s trade policies; consequently, the impact would fall on the H-1B visa aspirants too.
Indian IT company Wipro Limited has averred that Trump’s policies could be detrimental to its business. In its annual report to the US Securities and Exchange Commission, the company said the administration’s trade policies could badly affect their as well as their clients’ businesses.
“On November 8, 2016, Mr. Donald J. Trump was elected the next president of the United States. As a candidate, President Trump and his administration expressed support for policies impacting existing trade agreements, like North America Free trade agreement (“NAFTA”), and proposed trade agreements, and promoting greater restrictions on free trade generally and significant increases on tariffs on goods imported into the United States,” the report said. “Changes in U.S. social, political, regulatory and economic conditions or in laws and policies governing foreign trade, manufacturing, development and investment in the territories and countries where we currently operate could adversely affect our business.”
The report mentioned the company generates 52 percent of its IT Services revenue from the Americas, which consists of North and South America. However, the volatility in its financial markets could hamper their clients’ businesses, who would eventually decrease spending on technology. “Reduction in spending on IT services may lower the demand for our services and negatively affect our revenues and profitability,” the report explained.
Interestingly, the report did touch on the impact of proposed immigration and work visa policies, especially the H-1B visas, on the company. Several companies including Google, have conveyed their disappointment over the H-1B overhauling. Google’s Eric Schmidt has gone to the extent of calling the limit on H-1B visas as the “stupidest policy.”
Headquartered in Bengaluru, Wipro has 200 offices and facilities outside India. Though it may the first Indian IT company to openly declare Trump as a threat to their business, apparently, the sentiment is widely echoed among others, too.
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Wipro’s days are numbered.