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Infosys CEO Says Trump Election May Weigh on Margins

November 17, 2016, 10:23 PM UTC
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VIRGINIA BEACH, VA - SEPTEMBER 06: Republican presidential nominee Donald Trump pauses during a campaign event September 6, 2016 in Virginia Beach, Virginia. Trump participated in a discussion with retired Army Lieutenant General Michael Flynn. (Photo by Alex Wong/Getty Images)
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Indian software service group Infosys is bracing for pressure on its U.S. business from anti-immigrant policies by U.S. President-elect Donald Trump, who has identified clamping down on immigration as one of his three top priorities.

“Margins might be impacted in the near-term,” Chief Executive Vishal Sikka said, adding the company had not yet done any simulations on how large the impact may turn out to be.

Infosys’ (INFY) contingency plan for the case that the group would not be able to send low-cost developers to work with temporary work visas on big tech projects in the U.S. would be to hire staff locally, he said.

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Sikka conceded that hiring people in the U.S. would likely be more expensive, adding that he saw no shortage in potential applicants.

“There are enough universities, enough ability to hire, enough ability to teach,” Sikka said, adding he did not expect to lose market share to U.S. peers such as Cognizant (CTSH).

Infosys last month cut its annual revenue growth target for the second time in three months as India’s software service exporters feel the pinch of major Western clients holding back on spending.