Indian companies creating more jobs in US – Anti sourcing brigade losing turf

As US Presidential Elections are fast approaching, all the Indian Software companies are aiming at an image makeover as anti-sourcing is the hot topic. In the midst of US Presidential Elections, Outsourcing jobs has become a topic of immense debate. US have always been critical regarding Indian companies taking away more number of jobs. The US president has expressed his concern regarding the fact that US companies are offshoring many of the jobs to Indi. Several significant measures like higher tax for US companies having branches in India, bringing down the Incentive schemes for such companies etc have been introduced so as to discourage US companies from doing this. Indian companies now have become one of the largest FDI players in US.

NASSCOM in the midst of this controversy has published report giving the figures relating to outsourcing jobs. This report highlights the fact that Indian companies are in fact creating more jobs in US. Key Highlights of this report includes the following –

  • Out of the total job figure, around 2, 80,000 jobs are being supported by Indian IT companies. Around 2, 00,000 jobs are being supported by the Indian companies for locals. This figure has showed a double increase during the last five years.

  • Around $15 billion is paid as taxes for 5 years and $5 billion is invested on account of US acquisitions.

  • There have been significant contributions from Indian companies towards the US economy. When we observe the figures, an investment of more than USD 5 billion has been made. The figures related to the growth in acquisitions by the Indian companies have reached 54% in the fiscal year 2010.

The industry figures signifies India as a $100 billion IT and Business Process Outsourcing Industry which directly employs 1, 07,000 people in US. This figure has doubled in Five years. Some of the major IT companies in India, plan to hike their recruitment activities abroad. Following are some of the steps initiated by the Indian IT majors –

  • Indian IT major Infosys has already transformed its operations as similar to any US firm from changing from Infosys in USA to Infosys USA. As part of this initiative, Infosys plans to double the figure of local recruitment from the next fiscal year onwards.

  • India’s major Software Service Provider Tata Consultancy as part of its plan to acquire local support opened a Technology centre for Mobile computing work in Santa Clara, California.

  • Another IT major Wipro plans to make half of its total staffing to be local in US. The work force employed by Wipro in US is around 10,000. Apart from this, Atlanta Georgia centre proves to be another example for recruiting local talents. Around 80% of its work force includes US citizens. The global work force figure of Wipro is around 1, 20,000.

IT companies in India plans to get engaged in local US recruitment. This is probably one of the major challenges faced by them as the companies expect to achieve an American look through this step.

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