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Visa suspension likely to boost demand for subcontractors in US

Most of the demand is likely to come from mid-tier and small IT firms with low localisation ratios

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On an average, subcontracting forms about 10-15 per cent of total employee cost in most Indian IT services firms

Debasis Mohapatra Bengaluru
US president Donald Trump's executive order to suspend non-immigrant visas till the end of this year is likely to boost the demand for temporary staff in the North American nation at a time when demand for subcontractors is on a steep decline. This is expected to benefit subcontractor firms such as Manpower Group, Randstad, Adecco, Kelly Services, Allegis Global Solutions and a host of other boutique staffing firms which supply skilled manpower to technology companies in the US.

“Utilisation levels of most subcontractors supplying engineers in the US is down by around 30 per cent in the past three months.

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