Indian outsourcers highlight US job creation

A Nasscom team visiting the U.S. will highlight the direct and indirect jobs created by Indian outsourcers

Indian outsourcers employed 107,000 staff in the U.S. in the Indian fiscal year ended March 31, 2011, in addition to providing indirect employment to 175,000 people, according to a study to be released in the U.S. by the National Association of Software and Services Companies (Nasscom) on Wednesday.

The Nasscom study, which comes in the run-up to U.S. presidential election, appears to be aimed at deflecting criticism of offshoring in the U.S., which still had an unemployment rate of over 8.3 percent in February.

The number of U.S. citizens among the staff hired has gone up to about 30 percent from less than 10 percent four years ago, Nasscom president Som Mittal said in a telephone interview.

The numbers are still a small percentage of the about 2.5 million staff employed by the IT and business process outsourcing industry in India, which address both the domestic and export market.

But Mittal promises significant changes. Local hiring in the U.S. has more than doubled in the last five years, according to the study.

Not only are Indian companies creating jobs in the U.S. and investing in companies in the country, but they are also involved in training staff and other activities aimed at boosting the local workforce, Mittal said.

Infosys, India's second largest outsourcer, said on Monday that it teamed up with Wayne County Community College District in Detroit to offer training in software development.

But there have also been demands to keep jobs in the U.S. rather than send them to other countries.

The U.S. Call Center and Consumer Protection Act (HR 3596), introduced in the U.S. House of Representatives in December, aims to discourage call centers from setting up overseas operations. Mittal does not believe the legislation represents a trend, but reflects issues that may surface from time to time. Nasscom holds that outsourcing to India has helped U.S. industry stay competitive, and as a result helped retained jobs in the U.S.

Now Indian companies are expecting to play a more direct role in creating jobs in the country.

Between 2006 and 2011, Indian companies have been steadily adding jobs in the U.S., even as the economy shed jobs, Mittal said. The numbers of U.S. employees of Indian outsourcers is expected to grow this year as well, he added.

Indian outsourcers are hiring more staff in the U.S. to offer value-added services like consultancy to U.S. customers, to employ experts and domain expertise who work closely with customers, and also to provide services in the same time zone, Mittal said.

The U.S. accounts for over 60 percent of the revenue of Indian outsourcers.

In the U.S., Indian companies made 261 acquisitions between fiscal 2007 and the first quarter of fiscal 2011, investing more than US$5 billion. Indian companies have also paid out $15 billion toward taxes and Social Security contribution during fiscal 2006 to fiscal 2011, according to the study.

India has been slow to open a number of its industries, including the retail sector, to foreign investment, and this issue is likely to come up in discussions about outsourcing in the U.S. Mittal, however, holds that the Indian IT sector has been deregulated over the last two decades and Indian government and public sector buying constitutes a large market for U.S. IT equipment and services companies.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Essentials

Brother MFC-L3745CDW Colour Laser Multifunction

Learn more >

Mobile

Exec

Sony WH-1000XM4 Wireless Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?