Mumbai: The Vishal Sikka resignation masks the rot in India’s once feted export sector.
While Sikka not so good relation with founders at Infosys was the reason behind his resignation, the malaise is much deeper.
There is no denying the fact that software services exports are experiencing their longest slump in the last five years or so.
“Indian service companies gained scale over the last decade as the disrupters, creating the modern offshoring industry, but they are now the incumbents, challenged by a slew of specialized and niche start-ups bred in this new environment,” pointed out Arvind Subramanian, Prime Minister Narendra Modi’s top economic adviser.
India’s economic survey clearly pinpoints that Trump’s ‘Buy American, Hire American’ executive order and the U.K.’s visa costs increase is limiting the free movement of Indian engineers.
“Hiring momentum remains slow,” NASSCOM, said in its review for the April-June quarter.