India IT firms may raise fees to counter dearer US visas

EGGS IN ONE BASKET: The United States is the biggest market for the outsourcing industry, which is dominated by Tata Consultancy Services Ltd, Infosys Ltd and Wipro Ltd.

MUMBAI: India's export-driven IT outsourcing firms are likely to raise client fees and process more work from their centres in India to cushion the impact of an increase in fees for work visas in the United States, their top market, investors said. 

The new US measure will shave 50-60 basis points off the profit margins of information technology firms including Tata Consultancy Services (TCS) and Infosys from the next fiscal year starting April 1, they said.