Rising H-1B costs are a short-term storage, but Indian is intact in the long term: Sandip Agarwal

The recent increase in H-1B visa costs is expected to weigh heavily on Indian IT companies in the short term, but the industrial veteran Sandip Agarwal believes that the structural benefits in the long term outweigh the immediate challenges.

“In terms of figures, if you look at the top five, they have around $ 80 billion in income and EBIT-Marges of around 19-20%, or $ 16 billion. Based on an extra cost of $ 100,000 per visa, multiplied by the number of visas issued last time, this would have a very positive movement in the long term Post-arches, which can be managed from India, “said Agarwal in an interview with ET NOW.

He admitted that the short-term front views are clouded by several headwinds, including ai-conducted disturbance, the delay of growth and now visa-related costs.

“In the short term there is hardships, and I don’t really understand the purpose of this step, because there is no unemployment in the American technology sector. It is difficult to see what this achieves. In the short term it is negative, but in the longer term I don’t see much challenge.”

In the field of investment front, agarwal that India has the understood, with the Nifty IT index of almost 16% years to date. “We are going through a heavy phase and uncertainty is the creation of chaos. Investors generally avoid uncertain sectors, so there will be challenges in the short term. In the longer term, however, I expect much better times, with structural shifts in the sector that make more offshoring possible.”

He also emphasized that smaller IT companies could get a head start if dealer sizes shrink. “Smaller companies benefit from the flexibility of implementation, although they are also faced with the challenge of managing cost printing. I believe that smaller companies will surpass more than medium -sized companies, and medium -sized companies will perform better than large companies, because smaller players are more rational in recent months than middle -year stormy. find this issue. Things can look very dark at the moment, but companies will adapt within the next two to six months. I am not negative for the longer term, although the short term will be difficult and I am confident that the industry will be stronger, because there are no real alternatives for India’s IT assistance source. “((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)