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Trump’s H-1B reform resolves few questions

Stephanie Overby | April 21, 2017
It’s unclear if the U.S. president’s latest order will, in fact, help American IT workers or lead to increased offshoring and automation.

It’s prudent for IT outsourcing customers to stay on top of the discussions and developments, review their current sourcing strategy, and plan contingencies accordingly,” Brown says.

 

How IT outsourcing customers can reduce risk

IT outsourcing customers can lessen their risk by making sure they understand how reliant their providers are on H-1B visas. “Organizations need to understand their exposure directly and indirectly via their providers,” says Brown. “Talk to providers to understand the number of workers at risk and what are the provider’s contingency plans and fold those into an organization’s own contingency plans, such as building up operations already offshore, doing more local hiring, pursuing more process automation, or all three.”

“They should also proactively check to make sure current or planned onshore resources don’t require visas,” Rutichik says. “If they do, they need to approach the engagement with their eyes open to possible limitations and risks. Ultimately, customers should vet their provider selections thoroughly to ensure they have requisite U.S.-based resources for onshore work.”

Outsourcing customers should also expect some providers to push for increased automation or offshoring in response to potential changes to the visa program. “Automation is often helpful,” Rutchik says, “but customers should ensure contracts allow them to take advantage of efficiencies and cost savings rather than giving all the benefits to the providers, as well as protect them from undue risks due to the rate of change in technology.”

 

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