Going global, Indian firms create jobs in the U.S.
Date: Friday , December 07, 2007
Indian firms are not just taking up outsourcing any more. In fact, they have invested a whopping $6 billion in the U.S. and created 40,000 jobs with quite a few of them going to the Americans.
For the last couple of years, if a Janaki was posing as Janet at call centers in India, which has been servicing customers in the U.S., today many a Jane and John employed by Indian companies in the U.S. are now helping travelers worldwide book a flight or send flowers and gifts to loved ones in America.
A group of 34 Indian companies represented through the India Business Forum (IBF), launched in June 2006, structured at the initiative of the Confederation of Indian Industry (CII), has made investments in diverse sectors like technology, pharmaceuticals, manufacturing, and gems and jewellery.This year, Indian companies with 40,000 employees have invested about $6 billion in the U.S. through acquisitions and mergers. While there are more Indian nationals in the service sector, the number of local employees goes as high as 95 percent in the manufacturing sector.
“Indian companies are no longer just Indian. They are as much global as any other,” says Kiran Pasricha, the CII Deputy Director General based in Washington. Besides the U.S., CII has set up similar forums in Singapore and South Africa with one in the process of being launched in China.
The Tata Group alone has invested over $2 billion in the last couple of years through acquisitions and mergers in the U.S. with 16 of its companies from hotels to manufacturing employing 16,000 people, about 5,000 of them being local.
“With very few exceptions, our hires of local employees are on the basis of their skill sets, not on their knowledge of India or international experience,” says David Good, Chief Representative of the group for North America and the American chair of IBF.