Aug 27, 2017

India's squeezed tech workers

AP

Indian tech workers — for decades a backbone of the U.S. IT sector, and a big presence in U.S. university STEM programs — are facing a reckoning in the U.S. and at home, and are having to up their skills to adapt.

  • President Trump's proposals to curb immigration favor high-skilled, high-paying jobs, and target Indian IT outsourcing companies like Wipro and Infosys, which rely on H-1B visas to bring workers to the U.S.
  • The rise of automation and machine learning technologies will reduce some IT jobs, leading to layoffs.
  • Countries like Vietnam and the Philippines are quickly developing tech workforces that compete with India for outsourcing.
  • An increasing need for in-house tech collaboration is leading some U.S. and European firms to turn from outsourcing to local talent.

Why it matters: These shifts are a cloud hanging over one of the most vibrant sectors of the Indian economy: Indian IT — coding, creating and testing software, entering data, customer service — creates $150 billion in annual revenue and employs nearly 4 million people. The tech and political trends challenge all of this.

Depending how far they go, the trends are also a potential threat to Silicon Valley startups and IT companies that have formed a symbiotic relationship with Indian know-how and labor.

Automation has already had a huge impact on the nature of offshoring, says Gartner analyst Helen Huntley. Companies are increasingly hiring local rather than using offshore firms, in part so they can work with clients in real time instead of dealing with a 12-hour time difference.

As a result, Indian workers— like workers across the globe— will need to learn new skills.

  • New jobs may be designing bots, developing languages between them, and supporting an "internet of things" infrastructure. "I think a lot of these people will naturally shift into different kind of work, but there's plenty of work out there," Huntley said.
  • "In the short term, there will be pain on the Indian side, but it's a blessing in disguise," said Sunder Kekre, a business professor at Carnegie Mellon University.
  • Kekre went on: "In the long term, Indians will develop better capabilities and they will still partner with the Microsofts and the Apples of the world. And they'll be able to get a higher salary as a result."

Go deeper

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 6 p.m. ET: 926,095 — Total deaths: 46,413 — Total recoveries: 193,031Map.
  2. U.S.: Total confirmed cases as of 6 p.m. ET: 209,071 — Total deaths: 4,633 — Total recoveries: 8,434Map.
  3. Business updates: Very small businesses are bearing the brunt of the coronavirus job crisis.
  4. World update: Spain’s confirmed cases surpassed 100,000, and the nation saw its biggest daily death toll so far. Over 500 people were reported dead within the last 24 hours in the U.K., per Johns Hopkins data.
  5. State updates: Florida and Pennsylvania are the latest states to issue stay-at-home orders — Michigan has more than 9,000 confirmed cases, an increase of 1,200 and 78 new deaths in 24 hours.
  6. Stock market updates: Stocks closed more than 4% lower on Wednesday, continuing a volatile stretch for the stock market amid the coronavirus outbreak.
  7. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

FBI sees record number of gun background checks amid coronavirus

Guns on display at a store in Manassas, Va. Photo: Yasin Ozturk / Anadolu Agency via Getty

The FBI processed a record 3.7 million gun background checks in March — more than any month previously reported, according to the agency's latest data.

Driving the news: The spike's timing suggests it may be driven at least in part by the coronavirus.

What disease modeling could learn from weather forecasting

Illustration: Eniola Odetunde/Axios

COVID-19 has brought the arcane work of mathematical disease modelers to the forefront, as politicians search for ways to flatten the curve.

Why it matters: Models are the only way we can plan out effective steps now to prevent more deaths in the future. But modeling a disease in mid-pandemic isn't easy, and important nuance can be lost in the translation between academic modelers and policymakers.