Trump’s latest outsourcing policy to be feared by IT giants?


After Donald Trump’s election last Wednesday, to take over the US Presidency, many have concerns for the software and outsourcing industry jobs. Fortunately it seems the impact of such results may not be as significant as first anticipated, say experts.

Outsourcing jobs

Trump had previously alleged that the Americans are living through the greatest job theft in the history of the world. He stated that companies have moved jobs to countries such as India, China, Mexico and Singapore instead of keeping their workforce within the United States.

He accused one of the leading US technology powerhouses, IBM, of re-locating 500 of their jobs from Minneapolis to India and other countries all while letting go the current occupants of those jobs.

We can see from statements by Joseph Devasia, Managing Director of Antal International India, “With this win, the immigration policies that Trump stands for could spell a difficult time for the software and outsourcing industry, significantly affecting the growth of this industry and related remittances from the US to India which are considerably high”. In the short term, this would be a space worth watching and how immediate policy decisions may impact India.


Alluding to the fact that Trump’s own companies manufacture thousands of items overseas he promised at Liberty University as early as January that “we’re going to get Apple to build their damn computers and things in this country instead of in other countries,”.

If companies like Apple were forced to adhere to his policies it would cause significant problems. It would be both logistically impossible and economically disastrous. Forcing such companies to produce their products in the United States would make their produce so wildly expensive that they would become unable to compete with foreign competitors like Samsung.  With diminished margins, Apple would need to reduce costs – including scaling back corporate operations or closing retail locations, which serves to employ thousands of Americans in itself. His Position seemed cemented in punishing companies that produce products offshore by placing tariffs on imports back to the US. It is expected that once Trump assumes office, his business acumen will drive him to take a balanced view on contentious topics such as outsourcing and immigration, thought by some of the leading specialists in the industry.

Where to go from here

On a final note the United States is more technology-driven than any other country. As things stand, it does not have the human capital required to serve its huge requirements and It looks unlikely that such cutting-edge skills will be developed in the foreseeable future either. This makes it imperative that dependence on skills drawn from wherever available will continue.


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