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Indian IT boom to provide job opportunities abroad

By SiliconIndia | Wednesday, 24 June 2009, 04:05 Hrs | 6 Comments

Indian IT boom to provide job opportunities abroad

Bangalore: So far American firms have been picking up talent from India by offering good salary packages. But things might soon change as Indian companies are now scouting global market to hire employee. One such company is Infosys which is spending $100 million over the next year to train 25,000 overseas workers and college graduates, targeting in particular those from Massachusetts Institute of Technology and Harvard University.

Many Indian companies are opening offshore offices and recruiting the local staff. Also, labor shortage in India is forcing companies to look elsewhere. Indian companies have come a long way from just being back office outsourcing firms. Now they process into areas such as design, research and development, and sophisticated business applications that require highly skilled workers.

For many years, U.S. companies have hired people from India but now caps on number of visas for foreign professionals have caused delays in processing applications and has forced Indian companies to develop another strategy for its offshore branches. "They said, 'Let us train people in the U.S. or India and make them an extension of our offshore team, in the U.S.' So, Americans are now becoming the offshore component for foreign firms," says Gary David, an associate professor of sociology at Bentley College, Boston.

Right now, more than 10,000 American expatriates work in India for Indian information technology consulting and other outsourcing firms, a number that is expected to grow, says John McCarthy, vice-president of Asia Pacific research at Forrester Research in Cambridge, Massachusetts. He estimates that U.S. employers will move 3.4 million jobs and $136 billion in wages overseas by 2017.

U.S. firms seek to cut costs while Indian firms Infosys and TCS are scouting for highly skilled talent outside India, and they say they will pay the local going rate. "We're hoping to bring a different kind of diversity to our workplace. For us, diversity is a way to encourage innovation," said Bikramjit Maitra, Head of Human Resources at Infosys. Since India has become a centre for computer science, firms can teach new employees in India, where there is state-of-the-art training, says Surya Kant, President of TCS America.

Analysts from Gartner, based in Connecticut, say that outsourcing of IT jobs from the U.S. and Europe to developing countries will increase to 30 percent by 2015, up from less than 5 percent currently.

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Reader's comments(6)

1: If they are going out for skilled workers then why do they need to bring them to India and provide training OR send trainers from India. This means the skill is available in India, they do not want to train us, they are just going out for cheap labour...

Posted by:Remish - 27 Jun, 2009

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2: Akhilesh you are right Indian companies should be centric to India, But You know Indians are the most unpatriotic people in the World and in particular Tamlians and some part of Telegu. In tamil nadu they vote for money and priyani. In Andra Christian Rajasekar Reddy is using Tirupathy income for spreading christianity.

Posted by:sxb5nx - 25 Jun, 2009

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3: There is no scarcity of cheap talents here in India.Whats the need to go and hire people there? Is it like they want to get talented resources for research etc, pay high salaries to them and let cheap indian workers working under them.

Posted by:NaeemAr - 25 Jun, 2009

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4: I have seen a lot of tren in infosys recently I guess the company is no doubt going southwards it just a matter of time before this company files bankruptcy all we need a is good competetor to bring down infosys infosys eyes have reached its head it think is globalising and al the shit acronymns in the market butboss sorry you are going to file bankruptcy since you are big it is goig to take a little while either before you come to senses or you go bankrupt since the indian govt did this kind of idiotic things people lef india and supported foreign countries since infosys is doing the same they will leave infosys and join smaler companies abroad and slowly compete infosys in prices and quality and one by one each customer will be plucked out of infosys

Posted by:Parthasaradhy - 24 Jun, 2009

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5: The word 'diversity' is gaining top priority to Indian companies, what has happened to these Indian firms, it is just reverse in the case of foreign companies they give priority to their nationals first, and if they are recruiting any Indian they are saving their money, as labour cost but i can't understand what u companies will achieve in recruiting foreign nationals there and spending around 5 times more as compared to India, Its good to recruit in us and other parts of the world, but the focus should be in India specially for Indian firms, do remember that we are technically better and cost friendly to any company of the world...

Posted by:Akhilesh Tripathi - 24 Jun, 2009

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6: I dont think there is shortage of labour in India. What happen to talented Cheap labour in India?

Posted by:Mona - 24 Jun, 2009

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