Crocodile tears! This is what I could see from the IT giants functioning in India and US, post Donald Trump assuming office. These IT giants are now concerning about employment opportunities and portraying as if immigrants are going to lose jobs and getting H1B visa will remain a dream.
What were they doing before?
Many Indians were seeing USA as a land of making money since 1990s. This was because so many of them saw Y2K problem as a golden egg laying duck. They just had a degree or a certificate in java or C++ and migrated into USA after gaining a couple of years experience in India. This entry gave them an easy way to get green card and eventually led them getting citizenship. Most of the Indian immigrants are now citizens of both India and USA. It all started well until 2001’s 9/11 attack. This experienced a chaos in IT industry also. Restrictions were increased for immigrants coming to the USA. US administration directed IT giants to outsource people offshore to get things done, rather bringing people immigrate. Folks, just listen this process started way earlier in 2001.
After that, so many IT companies started flocking into Old Mahabalipuram Road in the outskirts of Chennai and renamed their asylum as IT Corridor or IT Highway. Government of Tamil Nadu encouraged these people by giving them land for a lower price and dedicated electricity and water connections. Tamil Nadu government saw this as a solution to increase employment rate. Eventually they ignored the alarming decrease in the size of farm lands, exploitation of human resources and rocket high price rise.
In the beginning, there was lot of job opportunities between the years 2003 – 2008, until the economic melt down in the year 2009. IT companies were struggling to fill their positions and started recruiting engineering graduates from irrelevant disciplines like Mechanical, Civil, Chemical, Biomedical Engineering etc. Attractive salary, medical benefits and company perks were direct lustre on this career, which led to white collar job, social status and the best marital fortunes were the indirect benefits seen by the Indian society. This fed to the greed of Engineering college owners to start new colleges, increase the number of intake in their existing courses and their business was flourishing since then.
2009 Economic meltdown…
It was 2008-09, there was a global economic meltdown. This paved way for massive layoffs in IT sector. Thousands lost their jobs and those who secured their jobs had to do extra tasks everyday with no extra pay. Campus level recruitment in educational institutions found a drastically lower performance in the decade. Job security of IT employees got lower. This led to long work hours and exploitation of human resources. A situation is prevailing even now that the employer can terminate an employee even without a proper reason and their was no one to question. Those who tried questioning the employers are put under the black list of NASSCOM. This black list is an everlasting nightmare for IT employees that, they could not apply any other company.
How does Trump’s policies gonna help the US?
As the IT firms are outsourcing projects to India, qualified Americans back home are losing jobs. For an instance, if an American would work for a software company with a minimum wage of $2000 per month; same job could be done by an offshore Indian employee for a meager salary of less than $230 per month with no need for extra hour pay. This pay band of $230 is remaining same for the past 20 years. For any job which has to be done in the US onsite, the engineers working in India is sent to the US with H1B visa for yet another lower pay which Americans normally don’t agree to work for. Trump has banned immigrants from 7 Muslim majority nations and restricted the H1B visa requirements. By the new laws, IT companies must pay an onsite employee with a sum of $100,000 per year for getting H1B visa. Like Ford, Trump seems to encourage companies to get projects done by the US based companies and be developed in the US. This has become a fear factor for IT giants in India for losing clientele and need for paying higher salaries to employees.
What to think about IT companies?
Those guys who never cared about the societal consequences of massive layoffs, exploited the employees with long work hours and paid peanuts to their employees are now shedding crocodile tears with a false empathy on the IT employees. The cries of these MNCs are just to sustain with a lower pay scale. In this scenario, what Trump is doing for increasing the employment rate in the US is wise and this will eventually create a better work environment for Indian IT sector.