In a report late last week research firm CLSA Asia-Pacific Markets downgraded the information technology sector because "the margin of safety" in these stocks has receded, it said. The main concerns enveloping the sector right now include a flattening growth rate, new, more stringent rules on work visas, and the challenges of coming up with a new business model as a result, the report said.
- Associated Press
- The U.S. government is probing whether Infosys abused a temporary business visa program. Above, the IT firm’s Bangalore headquarters.
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The visa issue is potentially becoming a game changer for the Indian IT industry, which takes many workers overseas for projects. But visa policy in client markets like the United States, the United Kingdom, Switzerland and Canada has, for the past 12-18 months, been veering towards greater oversight and more stringent rules, the report noted.
Rejection rates for works visas for some of the biggest Indian tech companies have soared to nearly 40%, up from a mere 5% 18 months ago, the report noted. At least one top tier IT company has not received a single work visa in either the short-t [...]
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