How Will the New Administration Impact Your IT Department?

by Stephanie Faris on Monday, January 16 6:00

A new administration takes office this week and with any new administration come changes. Savvy business leaders prepare early for those changes to avoid any surprises. For IT departments, this also means watching for specific plans relating to product imports, employment, and offshore workers.

Even if you ve closely followed political news over the past year, you may not be fully aware how the new administration will affect your business s IT. Here are a few things to watch as the new administration steps in.

Employment

Perhaps the biggest impact will be felt in the hiring process. For IT professionals who are citizens, job opportunities may open up if overseas outsourcing is penalized. However, a definitive statement has not yet been made relating to outsourcing services like IT work. One area that has been widely discussed in the press is the practice of securing H-1B visas for skilled overseas technology workers to gain access to live and work in America. The president-elect stated during the campaign that he felt the program was bad for American businesses, but it has not yet surfaced in his post-election plans. Businesses that use the program to employ tech workers will be watching for any news on the issue in the coming months.

Equipment and Parts

Whether the average consumer realizes it or not, the electronics they use every day rely heavily on overseas manufacturing. Samsung and LG phones are made overseas, as well as the iPhone. If the Trump administration places tariffs on imports, prices may rise on many of those products. Companies like Apple are considering bringing manufacturing back to the states, but American labor is generally expensive than what overseas workers command, so it could be difficult for American businesses to maintain their current profit margins without price hikes. For your IT department, this may mean that you re spending more on equipment replacement than you d originally planned in the near future. Keep that in mind as you re deciding whether to replace devices this year or wait.

Net Neutrality

One area of concern for both consumers and businesses is any possible change to net neutrality laws put in place under the previous administration. Currently, internet service providers are prohibited from setting policies that favor one customer over another. For instance, an internet provider cannot currently penalize customers who cut cable in favor of using online streaming services. Without these regulations in place, cable companies could theoretically prioritize high-paying corporate customers over small businesses and individuals. Those customers who were throttled, which is the industry term for the slowdown, could then be asked to pay more to be given higher priority. Although Trump has not specifically addressed net neutrality, it s an area to watch in the coming months.

As a new administration takes office, professionals in all industries are taking stock of any changes that might directly affect them. For IT leaders, it s important to pay close attention to any laws that relate to overseas workers and manufacturing processes, as well as laws that might affect the services they receive from their internet providers.