Inability to secure visas may adversely affect company’s business, says IT firm
Cognizant Technology Solutions shifted almost 8,000 jobs out of India in 2017, while adding positions in North America, according to the company.
“We had approximately 2,60,000 employees at the end of 2017, with approximately 50,400 in North America, 13,800 in Europe and 1,95,800 in various other locations throughout the rest of [the] world, including 1,80,000 in India,’’ the IT services company said in its annual report
In 2016, the U.S.-based company had a headcount of 1.88 lakh in India, out of a total of 2,60,200, with almost 47,500 jobs located in North America.
The shifting of 8,000 jobs out of India must be read in the context of the Trump administration’s increasingly tough stance on immigration and tightening of visa norms.
Cognizant said that “risks relating to legislation and government regulation on immigration may affect our ability to compete for and provide services to customers, which could hamper our growth and cause our revenues to decline.’’
“The ability of foreign nationals to work in the U.S., Europe, Asia Pacific and other regions in which we have customers depends on their and our ability to obtain the necessary visas and work permits for our personnel who need to travel internationally,’’ it added.
“If we are unable to obtain such visas or work permits, or if their issuance is delayed or if their length is shortened, we may not be able to provide services to our customers or to continue to provide services on a timely and cost-effective basis, receive revenues as early as expected or manage our delivery centres as efficiently as we otherwise could, any of which could have a material adverse effect on our business, results of operations and financial condition,’’ the NASDAQ-listed firm said.
The IT major said that the anti-outsourcing legislation, if adopted, and negative perceptions associated with offshore outsourcing could impair its ability to service customers. These could adversely affect its business, results of operations and financial condition, it added.
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