Sector experts said this would not only reduce Infosys’ dependence on the H1B visa, which has seen increased restrictions under the current US administration. It will also help the company in building an employee pyramid for its future operations. “More local staffers means Infosys
can now participate in those outsourcing contracts where the work has to be done completely in the US, without any offshore component. It will also enable Infosys
to reduce the sub-contracting cost by executing projects through local hires,” an outsourcing advisor said.
In the quarter ended June, sub-contracting cost was 7.5 per cent of total delivery cost. North America as a region contributed 61.6 per cent of total revenue.
Before opening the Arizone centre, Infosys
had also opened innovation centres at Indianapolis (Indiana), Raleigh (North Carolina), Hartford (Connecticut) and Providence (Rhode Island) in the US. It has completed the hiring of 10,000 locals and plans to add another 1,000 American workers by 2023.
“Clients are happy that we.can work both sides, that we can work without constraints. And, given the centres we have built, we can now work anywhere, based on what clients want specifically from the project,” Salil Parekh, chief executive, recently told Business Standard.
However, tweaking of the delivery structure with more local hiring in client geographies is seen as margin-dilutive for now. “Hiring of more locals may impact margin in the short term. But, building up delivery capabilities in the US protects the firm against change in visa regulations in the medium term,” an industry analyst said.