Nov 29, 2016 07:00 AM EST

Donald Trump Visa Restrictions On Immigrants and Foreign Workers May Lead to Indian-Based IT Companies Hastening US Company Buyouts

By JC Santos

Indian Information Technology companies are speeding up their recruitment efforts in US college campuses, acquisition of US IT companies and efforts to register H1-B visas before the second quarter of 2017 to avoid the trouble of possible US visa restrictions as promised by US President-Elect Donald Trump. The latter had promised that it would limit jobs for immigrants to focus efforts on US citizen employment.

According to HuffPost India, India-based IT companies such as Tata Consultancy Services, Infosys and Wipro accounts for more than 86,000 new H1-B workers since 2005-2014 that allow these companies to help clients during their temporary stay in the country. Infosys COO Pravin Rao said the US is currently creating a "push back on immigration" and said the protectionism is not limited to the United States and Donald Trump's rhetoric but "the world over."

According to Forbes.com, US President-Elect Donald Trump's promise to deport the 11 million undocumented immigrants in the United States and could possibly cancel US President Barack Obama's DACA and DAPA programs that allow undocumented immigrants temporary work permits.

Most American companies outsource their IT needs to companies outside the country. India's IT sector benefits heavily from US and British banks and manufacturers. Visa restrictions would mean obstacles for smooth outsourcing of services from Indian companies and this could mean the US companies themselves will be left to pick up the work of these outsourcing companies -- including accounting, database management and cloud migrations -- after the possible damage US citizenship restrictions could bring to international employment.

US President-Elect Donald Trump promised not only the flushing out of immigrants but also tax cuts for the middle class. Some observers note that the tax plan may actually fail the middle class and still benefit the higher class that Trump promised to tax higher.  

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