Vishal Sikka says Trump win may weigh on Infosys margins

Vishal Sikka says Infosys margins might be impacted in the near-term but the firm has not yet done any simulations on how large the impact may turn out to be


Vishal Sikka conceded that hiring people in the US would likely be more expensive. File photo: Hemant Mishra/Mint
Vishal Sikka conceded that hiring people in the US would likely be more expensive. File photo: Hemant Mishra/Mint

Berlin: Indian software service group Infosys is bracing for pressure on its US business from anti-immigrant policies by US president-elect Donald Trump, who has identified clamping down on immigration as one of his three top priorities.

“Margins might be impacted in the near-term,” chief executive Vishal Sikka said, adding the company had not yet done any simulations on how large the impact may turn out to be.

Infosys’ contingency plan for the case that the group would not be able to send low-cost developers to work with temporary work visas on big tech projects in the United States would be to hire staff locally, he said.

Sikka conceded that hiring people in the United States would likely be more expensive, adding that he saw no shortage in potential applicants.

“There are enough universities, enough ability to hire, enough ability to teach,” Sikka said, adding he did not expect to lose market share to US peers such as Cognizant.

Infosys last month cut its annual revenue growth target for the second time in three months as India’s software service exporters feel the pinch of major Western clients holding back on spending. Reuters

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