Canadian firms may actively look for alternative options if tensions persist: global tech analysts

Montreal [Canada], Sept 29 (ANI): (File Picture) Canadian Prime Minister Justin Trudeau with Prime Minister Narendra Modi as he said in a statement that Canada is committed to building closer ties with India, despite 'credible allegations' of the Indian government's involvement in the killing of Khalistani separatist Hardeep Singh Nijjar, as per Canada-based National Post reported. (ANI Photo) | Photo Credit: ANI

Mutual respect is a critical aspect of international business relations, and political and lobbyist pressures often play spoilsport by influencing government policies and stances, a pack of global technology analysts told The Hindu in connection with the ongoing diplomatic stand-off between India and Canada.

“India and Canada have a long history of trade collaboration and friendship which should be prioritised over political posturing,” opined Hansa Iyengar, Senior Principal Analyst, Enterprise IT Strategy, Lead Analyst, Enterprise Technology Advisory Service at Omdia, a London-based technology research firm.

“If this row continues for any longer, both sides stand to lose. The most problematic area could be travel. Travel advisories and potential visa curtailments could adversely impact mobility of tech workers,” Ms. Iyengar cautioned.

According to Peter Bendor-Samuel, Chief Executive Officer and founder of Dallas-based Everest Group, businesses tend to shrug off brief diplomatic spats between countries; however, if the diplomatic row between India and Canada stretches further it will certainly affect Indian tech firms’ ability to do work in Canada.

“It is important that both countries respect each other and facilitate a climate of trust,” Mr. Bendor-Samuel added.

Joel Martin, Executive Research Leader, App & Data Strategies at UK-based tech research firm, HFS Research reiterated, now that India has begun escalating this political row by limiting visa applications and travel to India by Canadians, it was fair to expect the possibility of the flow of talent between Canada and India to be impacted.

The business environment would become sour if the stand-off continues further and this would eventually force public and private Canadian firms, that are working with Indian tech firms on offshoring models, to actively explore alternatives to ensure they receive on-site or near-shore access to talent, alerted Mr. Martin.

Published - October 09, 2023 09:45 pm IST