On a worldwide basis, companies are pausing efforts or taking a step back from globalization. In Europe, this is most evident in recent months with Brexit in the UK. In the United States, it is most evident in the proposals underway in Congress and the White House for H-1B visa reform, rising trade barriers, and potential changes to the tax that could change the tax implications of offshoring. Although the extent of changes is not currently known, it is reasonable and probable that they will make offshoring more difficult and more expensive (for customers and their service providers) as well as less socially acceptable. Is your organization one of the many that are now seeking alternatives to sending work offshore to achieve cost reduction?

Most US organizations have substantially used offshore service providers in IT and business process outsourcing (BPO) to drive cost reduction. But there is currently a great deal of discussion in Congress and the Trump Administration – as well as actions taken by Executive Orders in the last seven days – about changing the H-1B and L1 visas. The changes affect the offshoring services provider as well as US enterprise customers that utilize offshored services. What are the impending impacts? My company collaborates with Rod Bourgeois, head of research and consulting at DeepDive Equity Research, and together we have followed the proposed immigration and visa reform.