With USA having tightened its H-1B Visa norms and New Zealand, Australia and Singapore also having become stringent about issuing job visas to skilled Indian manpower, chances are rife that reverse migration in India will quicken.
With the AP government all set to promote investments in the IT sector, shortage of technical talent is becoming quite apparent. This could be one of the major reasons why BPOs like Concentrix, HSBC and WNS are dealing with shortage of local talent and thereby low attrition rates.
During the CII meeting that was convened by Nara Lokesh, the IT minister, a senior official working in WNS stated that lack of local talent at the senior level is what is majorly affecting the BPM sector.
According to Ravi Eswarapu, the President of IT Association of Andhra Pradesh, it is not just the curbing of visas by Trump that is resulting in reverse migration. The cost cutting operations too are propelling skilled manpower back to their homeland. This is due to the fact that the vendors in India are expected to shell out more cash in order to send their employees for onsite assignments in the USA, thus leading to the rise in operational costs.
Presently the Indian based tech companies are also being pressurized to hire locals at their overseas branches. Naresh Kumar, the CEO of Symbiosys Technologies stated that the shrinking margins are compelling the companies to reduce their expenses and overheads.
It is being said that one of the reasons for cutting down costs can also be attributed to the decision of various tech giants like Cognizant to sack their underperforming employees.
Irrespective of what the reason for all the brouhaha, this is definitely good news for Vizag which is emerging as an IT hub and is sure to attract the techies working abroad. The Millennium Towers with a built up area of 300,000 square feet and an investment of INR 400 crores that is being built by APIIC at Rushikonda is believed to go fully operational by the end of this year.
According to a senior official of APEITA (Andhra Pradesh Electronics and IT Agency) and AP Electronics, all these developments occurring in the tech sector of the foreign lands is sure to result in reverse migration and brain drain which in turn will help Vishakhapatnam to grow into an IT hub.