US-led Trump policies on immigration could benefit tech companies
View(s):US-led Trump immigration policies, the potential for tech businesses to move out and the rapid growth of Virtusa Corp with a positive future ahead, emerged at a discussion Virtusa Chairman and CEO Krish Canekeratne had with a group of Sri Lankan business writers on Monday in Colombo.
On a whistle-stop trip to Colombo (from the US where he is based), Mr. Canekeratne discussed the new US policies on immigration, its visa constraints and what it means to the tech industry. On occasion, Madu Ratnayake, Chief Information Officer (CIO) and Head of Business Process Excellence, VirtusaPolaris, intervened to respond to reporters’ queries on matters closer to home (Sri Lanka).
While stating that the new administration’s immigrant proposals will eventually result in a middle-of-the-road formula and not as harsh as earlier announced by President Donald Trump, Mr. Canekaratne said in a worst-case scenario if skilled tech workers are unable to come to the US that business would go to other regions. “Tech companies with production facilities elsewhere will actually benefit,” he added.
The Sri Lankan-born tech entrepreneur who started the company 20 years – now with technology centres in the US, the UK, Hungary, India and Sri Lanka and over 9,800 workers – said the tech industry is seeing a lot of change. The fourth industrial revolution will be driven by strong tech level capabilities/capacities and by millennials.
Meanwhile in its latest 3rd quarter ending December 31, 2016 financial results, the company said third quarter revenue rose by 44.2 per cent year-on-year to $217.2 million
Mr. Canekeratne, was quoted in the results announcement as saying that, “We are pleased with our third quarter results. We see continuing client demand across our industry groups and geographies for our Digital Transformation and Innovation and Operational Excellence solutions. Our differentiated solution strategy and deep domain expertise are enabling us to win in the market, and position us well for sustained growth”.
The report said fourth quarter fiscal results revenue is expected to be in the range of $224 to $229 million while annual revenue is expected to be in the range of $856.8 to $861.8 million.