The recent set of reforms introduced by the US Government aiming to double the minimum salary of H-1B visa holders to USD 130,000 from the current level of USD 60,000 has sent ripples of shock in the economy worldwide. IT firms have been the first ones to drop their hats down, anticipating turbulent times ahead, as they fear their margins being severely hit. Well, there are already signs of anxiety in the market, as the announcement has given a big blow to the IT stocks. Definitely, it was an unexpected piece of news, and companies, after assuming silence for a couple of days (absorbing the news), have started gearing up and working aggressively to put an alternative strategy in place. The bill, if cleared by the US Government, could mean a lot of changes and exert a lot of pressure on the IT sector.
Needless to say, we have faced the brunt of such announcements in the past as well, and this would continue to happen. Surely, this is not the last earth-shaking development the world has to deal with. We have always emerged as winners from all kind of perplexed situations, and this one would also open the way for one bright alternative or the other to shine. Living in an advanced age, where there is no dearth of technological solutions, we know that a perfect answer can derived for all types of amendments introduced. Fortunately, the support systems are in place, along with a capable workforce, which are likely to steer the way forward.
The IT brains are working a lot faster; organizations must look at embracing the SaaS ( Software as a Service) philosophy and could do away with the idea of investing in the in-house server capacity and software licenses, thereby bringing the costs down drastically. It would also save the IT firms from facing the consequences of heavy staffing at this time, and a lot of existing professionals could be freed to perform other high-value activities of the organization, software willing to take care of the IT aspect. Interestingly, SaaS adoption by companies is already on the rise. IT management metrics provider Computer Economics reports that 60 per cent of all companies now have integrated at least some SaaS solutions into their business, with 36 per cent intending to increase their investment in the months ahead. A big thumbs up!
Organizations, which have already adopted the SaaS way, might look at increasing their spending towards it. Those who have not yet unleashed the potential of the mechanism would definitely flip the pages of their books and try to land at the right page. The idea is to leverage new technologies that rely less on engineers being on client premises. However, keeping in mind that SaaS software might not be as customisable as on-premise software, it is important to analyse its fit for the varied business processes of the organisation.
Having said that, the planned reforms if implemented, would have far-reaching implications on the economy, and elicit the IT firms to introduce fundamental changes in their business strategies. The choppy markets have already added to the growing turmoil faced by the IT sector. Whatever may be the final law of verdict, one thing is for sure – the systems are going to shake, perhaps a little only, but the best possible alternative would make its way to the top and establish itself as a new way of doing business.