Wipro becomes first Indian IT company to formally declare Trump as potential threat to business

[link to economictimes.indiatimes.com]

BENGALURU: Donald Trump is a risk factor for WiproBSE -0.60 %, the first time in years an IT company has designated a US president as a potential threat in its annual filing with the US Securities and Exchange Commission.

A company’s risk factors are a comprehensive listing of everything that could hurt its operations, revenue and profit — including geopolitical instability and terrorist attacks.

“Significant developments stemming from the recent US presidential election could have a material adverse effect on our business,” Wipro said in its filing. "On November 8, 2016, Mr Donald J Trump was elected the next president of the United States. As a candidate President Trump and his administration expressed support for policies impacting existing trade agreements, like North America Free Trade Agreement (Nafta), and proposed trade agreements, and promoting greater restrictions on free trade generally and significant increases on tariffs on goods imported into the United States.”

IT companies have been calling out the risks of protectionism and potential issues related to visas for years. Wipro has a separate risk factor detailing how it could be affected by restrictive changes to immigration laws in the US, UK, Singapore and Australia.

President Trump’s fierce protectionist rhetoric is a cause of great concern for Indian IT companies. Since his election, IT companies have all said they will increase their hiring onsite and will lower their dependence on the work visa. Wipro said that by the end of the first quarter, over 50% of its headcount in the US would be locals.