Increasing protectionism in the West and the rise of new digital technologies poses following challenges for India's IT service Industry, such as -
1) Continuous attempt at placing restrictions on H1B visa indicates the attitude of USA's establishment that in future Indian IT professionals are likely to loose their jobs in USA. Demand for similar barrier to entry in Europe is gaining momentum.
2) USA's policy of "Buy American and Hire American" has cut short the demand of IT outsourcing business from USA to Indian IT Companies such as Infosys, Wipro etc. In recent years all IT firms in India has witnessed lowest rate of recruitment. In addition many have reported to lost their jobs.
3) New digital technologies such as Artificial Intelligence (AI) and Big Data has potential to replace skilled IT professionals. AI technology promises to do the work of computer programmer - at lower cost, at high efficiency, more accurately, and without any labour law. When AI comes to do the job of an Indian Programmer, the later is most likely to loose his job.
However India should see this as an opportunity and do the following:-
1) Use the jumpstart India has acquired in IT sector, to create skills, and professionals in emerging digital technologies. World is moving towards AI, Big Data, Blockchain Technology, Virtual Reality, Smart City and so on. India should be the one who provides cutting edge service to world.
2) Use WTO as a medium to restrict West from placing arbitrary hurdles on ability and opportunity of Indians to work in US and to provide service to US via domestic industry.
3) Nurture new markets for its IT industry. Africa, Central Asia, Middle East and Latin America provides the fertile ground for emerging markets. India already has conducive relations with all these regions, its time that India build future of its IT industry over these relationships.
CONCLUSION;Certainly the protectionism in west and emerging digital technologies poses threat to India's It Industry. But India can not complain about these inevitability, rather India should make necessary preparation to deal with these challenges and tap the opportunity to become world leader in emerging digital technologies.
