Cognizant Moves 8000 Jobs Out Of India; Increases Headcount In US!
This massive job erosion from India is taking place due to sustained political pressure from the US.
IT Services giant Cognizant is moving jobs out of India and increasing their headcount in the US.
This massive job erosion from India is taking place due to sustained political pressure from the US. And this is not a good sign for India.
Cognizant: 8000 Jobs Moved Out Of India
As per data shared by the company, it has been found that while jobs are being moved out of India, their positions in the US has been increased.
It is still not clear as to how many out of 8000 jobs which moved out of India were relocated to the US, or how many were asked to leave.
As per latest employees number shared by Cognizant, here is the breakdown (at the end of 2017):
- Total employees: 2,60,000
- North America: 50,400
- Europe: 13,800
- Other locations of the world: 1,95,800, which includes 1,80,000 in India
Now, if we dig deep, and find out their employment numbers in 2016, then we will find that India headcount was 1.88 lakh, and in the US, it was 47,500.
This clearly means that a large percentage of jobs were shifted out of India, and placed in the US instead.
What exactly is happening?
Cognizant: Immigration Regulation Is Scary!
In their report, it is clear that Cognizant is scared of increasingly tough regulations pertaining to immigration, work visas, and subsequent business loss.
If there is a delay in obtaining visas for their consultants, then their work will get hamper, and they will lose business. As simple as that.
In their report, Cognizant said,
“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.”
If we read between the lines, then we will find that Cognizant has clients based in U.S., Europe, Asia Pacific and other regions; and they need to send their consultants, experts to these countries.
Now, with US making it tough to obtain work visas, like H1B, companies such as Cognizant find it difficult to send their employees from say India to the US.
And this is what President Trump wants.
We will keep you updated.