India’s third largest IT company, Cognizant, has said that the anti-outsourcing stance being adopted by the US could adversely affect their business, financial condition and results of operations and impair their ability to service customers.
In a filing to the US Securities and Exchange Commission under ‘risk factors’, the company said, the issue of companies outsourcing services to organisations operating in other countries is a topic of political discussion in many countries, including the United States, which is their largest market.
For example, measures aimed at limiting or restricting outsourcing by US companies are periodically considered in the Congress to address concerns over the perceived association between offshore outsourcing and the loss of jobs domestically. On August 13, 2010, President Barack Obama signed a legislation, imposing additional fees of $2,000 for certain H-1B petitions and $2,250 for certain L-1A and L-1B petitions beginning in August 2010 through September 20, 2014. If anti-outsourcing becomes a reality, Cognizant feels, their business, results of operations and financial condition could be adversely affected and ability to provide services to customers could be impaired.
“In addition, from time to time, there has been publicity regarding negative experiences associated with offshore outsourcing, such as domestic job loss, and theft and misappropriation of sensitive client data, particularly involving service providers in India. Current or prospective clients may elect to perform certain services themselves or may be discouraged from utilising global service delivery providers due to negative perception,” the company said.
Cognizant also said that their growth may be hindered by immigration restrictions.“Our future success continues to depend on our ability to attract and retain employees with technical and project management skills from developing countries, especially India. The ability of foreign nationals to work in the United States and Europe depends on their ability and our ability to obtain the necessary visas and work permits,” Cognizant explained.
Source:http://www.deccanherald.com/content/249027/anti-outsourcing-stance-hurt-growth.html
