skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

Ovum view


A Donald Trump presidency is an imminent reality, and as the shock of his unexpected win fades, IT services providers are left wondering what a Trump administration, and its potential anti-globalization and protectionist policies, will mean for their ability to execute on global delivery strategies. Realistically, it's too early for providers to take action until more clues and cues emerge as the new administration takes hold, but maintaining and optimizing their ability to move talent seamlessly across regions should be an immediate priority. Customers, meanwhile, who have leveraged global delivery for cost and talent efficiencies need to prepare for potential changes on both fronts.

Consequences on global service delivery and quality are top of mind, but undefined

A Trump candidacy, and now presidency, was defined in part by its anti-globalization message, even though how that would actually manifest itself remained mostly undefined throughout the campaign. Although it remains far too early to tell just what a Trump administration will bring, an anti-globalization position has the potential to bring massive disruption to IT services providers that depend on globally dispersed delivery models, and a range of regional talent in near- and offshore locations, to serve their clients. US enterprises will no doubt spend part of the immediate post-election period reviewing how and from where their services are delivered – whether infrastructure, applications, or business process outsourcing – and how new policies could impact current and future engagements.

All IT service providers, whether headquartered in the US or elsewhere, will be affected if more restrictive policies on trade and talent impose limits on where providers are able to source, hire, and train delivery personnel. This runs the risk of impacting service delivery quality for US customers. Providers differentiate themselves, in part, on their ability to access and leverage offshore talent wherever it's needed. A massive curtailing of H-1B visas, for example, will mean providers will need to make immediate shifts in what they're able to offer customers locally, unless or until they're able to compensate with talent. This situation could be especially pronounced for the India-based vendors, who have looked at the US for new and continued revenue growth opportunities using their offshore models as a core differentiator, and providers that have invested in Mexico, Central America, and South America to provide more nearshore capabilities to US-based clients. But all IT services providers, both US and non-US, rely heavily on global pools of talent to complement local skills and resources.

For providers, there's also the unanswered question of the impact on US government spending (including a potential repeal of Obamacare and subsequent consequences to providers' and payers' IT services). There's potential public sector impact not only at the federal level, but at the cascading county, state, and local levels, should there be any cutbacks or pullback on spending due to either a Trump administration or changes in state legislatures and governorships.


Further reading

"NTT Data closes its acquisition of Dell Services," IT0019-003587 (November 2016)

"CenturyLink acquiring Level 3 to create stronger US player and larger global challenger," TE0005-000867 (November 2016)


John Madden, Practice Leader, Large Enterprise Services

Recommended Articles

  • Service Provider Markets, Consumer & Entertainment Services,...

    MWC 2018 Highlights

    By Ronan De Renesse 27 Feb 2018

    Over 20 of our senior Ovum analysts and consultants attended this year’s Mobile World Congress in Barcelona at the end of February. In between meetings, briefings and presentations, our analyst team were blogging and tweeting about key developments, trends and rumors. Have a look through our daily MWC 2018 Highlights to find out what happened.

    Topics 5G AI IoT Cloud Payments SDN/NFV Smart home

  • Internet of Things

    IoT Viewpoints 2018

    IoT Viewpoints explore the IoT opportunity in 2018 and beyond. Download our latest e-book to get our newest collection of thought leadership articles on the emerging IoT trends, technologies and opportunities.

    Topics IoT

  • Consumer & Entertainment Services

    US pay TV: Is it facing an existential threat?

    By Adam Thomas 28 Mar 2018

    With US pay TV having endured the worst year in its history, thoughts have inevitably turned to the future. The likelihood remains that the immediate future will remain highly uncomfortable for everyone except the scaled multinational digital platforms.


Have any questions? Speak to a Specialist

Europe, Middle East & Africa team - +44 (0) 207 017 7700

Asia-Pacific team - +61 (0)3 960 16700

US team - +1 646 957 8878

Email us at

You can also contact your named/allocated Client Services Executive using their direct dial.
PR enquiries - Call us at +44 788 597 5160 or email us at

Contact marketing -

Already an Ovum client? Login to the Knowledge Center now