Indian IT companies’ on-site delivery down to 15.5 per cent in 2018-19

Visa restrictions and nationalist sentiments in countries like US, UK and Australia have started to show an impact on on-site delivery of IT services companies in India.

According to a recent report from the Reserve Bank of India, the share of the on-site model of delivery has come down from 25.5 per cent in 2007-08 to 15.5 per cent—a little lower than a sixth of total software and ITES exports in 2018-19. Under the Onsite Delivery Model, IT companies send employees from India to the client’s site in countries like the UK and US.

The situation is more acute in the US where H1B work visa denials have been on an all-time high. US is the largest market for Indian IT services exports.