Indian IT Cos Upbeat On Trump Presidency

The tech and tech services market have hit the bottom and is in the early stage of recovery. The Trump administration will likely accelerate this recovery - Peter Bendor Samuel, CEO of Everest Group, tells Bizz Buzz

Bengaluru: IT services industry is in the early stage of recovery and the upcoming Trump administration will further accelerate the revival. Experts in the US are of the opinion that Indian IT services industry will see net benefit accruing from Trump’s presidency as offshoring may increase in coming quarters.

“The tech and tech services market have hit the bottom and is in the early stage of recovery. A Trump administration will likely accelerate this recovery,” Peter Bendor Samuel, CEO of Everest Group, a global IT consulting firm, told Bizz Buzz.

According to Peter, denial rates of H-1B visa- the work permit given to professionals for working in the US- are not likely to increase under Trump’s presidency.

“We don’t see the denial rates rising significantly. Professional immigration is likely to be kept at similar levels as it is now,” he added.

During the July-September quarter, most Indian IT services firms reported improvement in their performance as demand environment showed signs of early recovery. Most of the green shoots emerged from the BFSI (banking, financial services & insurance) vertical during this period.

“In BFSI, financial institutions in the US are looking at sustaining the growth momentum with the Fed’s first rate cut in four years. Stability in the macro brings initial signs of confidence. With the easing of interest rate environment, consumer confidence and industry confidence will get better. This can potentially lead to improved investment,” K Krithivasan, CEO of TCS, had said during the post Q2 earnings analyst call.

With this tangible uptick seen in the BFSI vertical, IT industry is now pinning their hopes on business-friendly measures by the next US administration.

“The economy under Trump looks like it will be stronger as indicated by the jump in the stock market. A second factor is his focus in reducing immigration, which will likely to drive more work offshore as there is not a sufficient talent pool to meet demand in the US. AI regulation under a Trump administration is likely to be far less restrictive, which will open the market further,” Bendor Samuel of Everest Group, said.

Meanwhile, global technology industry has seen slowdown in the European market during the July-September period. Sources in the know said any resolution to Russia-Ukraine war can uplift sentiment. Cheaper natural gas and crude oil from Russia for Europe can significantly cool down inflation and supplement European recovery, leading demand for discretionary spending, they opined.