Transforming into a product nation

THE TREMORS OF the US tariffs are being experienced globally in varying degrees. In India, the impact so far has been on exporters of some of the manufactured goods. However, there are concerns about the emerging challenges the Indian IT outsourcing services industry may have to deal with.

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The $280 billion IT industry, built from scratch over the last four decades, has been the pride of India and the envy of many.

After the initial few years of providing staffing services, the industry has come a long way and has established a position of preeminence globally, building a reputation for delivering dependable, high quality solutions at significant cost advantage.

The current protectionist policy being pursued by some of the countries is reflected in restrictions on admissions of foreign students to universities, challenges in jobs and long lead times for becoming citizens in many cases. Adding to this is speculation of a 25% US tax on outsourced IT services, raising fears that Indian IT may become costlier and push clients to other markets.