Infosys to benefit from hiring in US
Sanket Dewarkar / 17 Apr 2017
The CEO of Infosys, Vishal Sikka, aims at achieving the target of USD 20 billion revenues by 2020, as his main focus will be on hiring the locals.
The market was inundated by the conundrum surrounding the H1-B visa and the expected impact of the same for the IT companies.
The recent news of IT major Infosys hiring in US has opened the flood gates for other companies to follow suit. We see this as a positive for the company, as it will reduce the impact of rise in H1-B visa restrictions, and will help mitigate the risk of rising INR.
A small brief on this can elaborate the benefit of this move. The previous minimum salary to the H1-B visa holders was $60,000. This now has been almost doubled to $130,000 as per the new legislation introduced in the US House of Representatives.
We see that company is generating over $125,000 per year in revenue per employee. Hence, for company to send employees on H1-B visa is not viable. However, to hire in US at similar rate of $60,000 to $80,000 is viable. Also, we note that inflation in US is not as high as in India, which provides for less attrition and lower salary hikes. Hence, we expect this move to lead to augmentation of operating profits, going forward.
The CEO of Infosys, Vishal Sikka, aims at achieving the target of USD 20 billion revenues by 2020, as his main focus will be on hiring the locals.
“FY17 revenues from new software and software-related services including Mana, Panaya, Skava and Edge grew at more than 42%,” Sikka said.
He added that the company will report revenues on a quarterly basis from the new software and offerings such as digital, Internet of Things and cyber security, from this fiscal onwards.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.