Priyank Kharge 'Suspension of PLCP for IT Firms Will Impact India'

Karnataka Minister Priyank Kharge on Friday said the US government's suspension of the Permanent Labour Certification Programme for major IT outsourcing companies could have complex and far-reaching consequences for India.It would also pose challenges to traditional IT outsourcing while creating opportunities for the country's technology sector, he said. 

In a post on 'X', Kharge, who holds Information Technology and Biotechnology portfolio, said the move could increase operating costs for Indian IT companies in the US, complicate the retention of skilled employees



and reduce flexibility in deploying Indian professionals onsit

"For the traditional Indian IT outsourcing model, this is clearly a headwind. It could mean higher operating costs in the United States, greater difficulty in retaining skilled employees and reduced flexibility in deploying Indian professionals onsite," he said. 

However, Kharge said the development could also accelerate the expansion of Global Capability Centres (GCCs) in India, bringing more global research and development, engineering and product development work to Indian cities.