Indian IT firms to increase foreign hires abroad

Indian IT firms to increase foreign hires abroad

By SiliconIndia   |   Tuesday, 28 April 2009, 03:27 Hrs   |    14 Comments
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Indian IT firms to increase foreign hires abroad
Bangalore: In a bid to tackle protectionist lobbies by positioning themselves as job creators in the markets they serve, India's top IT firms like TCS, Infosys and Wipro, are planning to increase the proportion of foreign employees in their workforce.

TCS plans to double its foreign workforce from the current 10,000 over the next five years, while Infosys and Wipro plans to see 10 to 15 percent of their total employee base as foreigners in three to five years, from around 5 percent now.

The move comes in the wake of growing anti-offshoring sentiments in the U.S., the world's biggest market for software services.

"It's a strategy to reverse the trend, as we realize that it's necessary to shed the old way of getting only Indians to do the jobs," said Pratik Kumar, Corporate Vice President and HR head of Wipro. "How can you justify the fact that despite significant overseas revenues, we still have over 95 percent Indians on the payroll?" he added.

Wipro will set up another centre in a tier-two U.S. town after its Atlanta development centre becomes fully operational in a few months from now. Over the next two years, the company will have around 750 U.S. citizens working at its Atlanta centre. "We aim to undertake significant local hiring, starting this year itself," he said.

Among the top Indian technology firms, TCS employs the most number of non-Indians, accounting for almost nine percent of its total workforce. Non-Indians account for around five percent of total workforce at Wipro and Infosys.

However, according to Mohandas Pai, HR head of Infosys, despite all the hype around hiring more local workers, finding skilled professionals with adequate programming skills remains a challenge in the US and UK.

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Reader's comments(14)
1: When will Indian tech companies and especially Indian politicians learn a few lessons of globalization. Unfortunately as the entire world embraces globalization, we Indians do not realize the value of globalization. For our politicians who speak nonsense most of the time and most of them hardly are aware of what is happening outside the country modify their speeches to show nationalism little having any interest in the nation. It's all about self interest and not even with a party interest. This is clearly evident from the fact that party members throw shoes and slipper and what next I wonder.

All Indian tech companies well know what is the new US administration policies and their well mentioned strategies. But the fact is that we are shamelessly adoring these political idols worthless of doing anything for the country. I am not generalizing this to all politicians but specifically to those who are destructive in their speeches distroting the mindset of the common Indian. What a disgrace.. to the NATION that was built with potential leaders like Mahatma Gandhi and others that followed suit. This para was only to touch the issue of why India needs to adopt globalization in its true sense.. For those of you who do not understand much of these should read the WTO trade laws and by laws.

INDIAN tech companies should learn from some of its near neighbours on building Economic Offset Programs: A tool for Technology Transfer. A wide range of literature already exists on the economic and political effects of Foreign Direct Investment (FDI) between countries. In essence, FDI exists because of market imperfections arising from impediments to the free flow of products between nations, as well as impediments to the sale and transfer of “know-how”. Does our so called politicians understand this to embrace this? I suggest they ask their committees to look at this and make a proper study on this and:
a. Understand the concept of offset programs as of of FDI
b. The rationale for implementing the Indian Economic Offset programs
c. Type of offset programs and their benefits
d. Offset obligations and their results
d. Economic impact of an offset program
e. Motives of foreign partners for their participation in the offset program
f. Investment structures of non-offset private sector projects
g. Companrison of the economic aspects of the offset and non-offset programs
h. Methods and components of technology transfer
i. Evaluation of the components of tech transfer for offset and non-offset projects in India..

Gentlemen, please take a look at the above benefits and evaluate yourself on the economic and political effects of FDI between countries... If the top Indian IT companies need to increase their foreign staff then be it so. But my recommendation would be to hire them as Program and Account Managers w3ho bring business into the country.

The above are expressed views of the author who is a Strategist. No resemblence is made of any nature to any one in particular may it be a political party or a company or an individual.. It is only to express a reverse strategy of the US thinking of off-shoring IT business.
Posted by:Rolando Gomez - 28 Apr, 2009
2: Folks,

You are all deluded into thinking that cheap labor transported from India is efficient. We get novices who have no clue of the western techniques and try to force their own myopic perspective on the type of solution required when it comes to consulting. Where Indians are superb is if they are given detailed design specs to work from.

In order to get a contract, one needs visibility, likeability, and credibility. The problem with the big Indian consultancy firms is that they don't have visibility at the board level, credibility in the market place, and likeability as people can see how they treat their staff and push them to work long hours on burgers - this is seen as shameful.

From another perspective, our culture does not promote true comradeship as each silo within each of these companies fight each other behind the scene in a very passive manner - refusal to support through silence and not sharing knowledge and templates.

All of the above has added to this backlash. Indeed, Indian consultants and senior technical managers suffer from deep narcissism and this impacts their ability to compete and deliver to promise.

It is a knee-jerk reaction for these firms to decide to hire locals as no company getting stimulus money can hand out contracts to Indian firms.
Posted by:Kabir - 28 Apr, 2009

I totally agree with you and hence read my personal comments. The BIG TALK does not work any more......
Rolando Gomez Replied to: Kabir - 28 Apr, 2009
You are right but I think these abilities will come to Indians as the time pass.
Fanatic Ind. Replied to: Rolando Gomez - 28 Apr, 2009
5: Sounds completely logical to me. These Indian software firms were transporting Indian professionals not for their betterment, but because they are cheap. You will find all Indians and Indians on client side and in offices of Infosys, Wipro and TCS. Not to forget Indian consultancy firms based there...

That picture had to change some time. You should hire atleast 40% of the people you are investing in - atleast there on their land.

But these professionals are not cheap as compared to our Indian professionals who works 14 hours/6-days a week and enjoy a burger for a meal.
Posted by:Yogendra - 28 Apr, 2009

Well said mate... Does our big IT companies ever realise that they send cheap labour ? Now what i meant is simple.. They make cheap deals and negotiate it with the staff who accept this deal... Compared to the Asian labor, Malaysian are highly paid next to Singaporeans, then the Arabians from Lebanon, Jordan & Syria followed by Indians, Pakistanis, Sri Lankans and the rest....... But recent trends show Pakistani tech people are more favoured and get a better salary then Indian tech people... LET THEM IT TECH COMPANIES WHO THINK THEY RULE THE WORLD... EVALUTE THEMSELVES AND THEIR PEOPLE.....
Rolando Gomez Replied to: Yogendra - 28 Apr, 2009
7: Its good part for the companies hiring alot of people .It will help in the flow of our culture and tradition globally .
Posted by:Anupam Rout - 27 Apr, 2009
8: this is very strange.. at home they are firing hundreds at one go and outside they are planning to increase their workforce.. why didn't they deploy these employees to those posts if they have so many vacancies?
Posted by:mihir - 27 Apr, 2009
Dude, these are your bosses (USA). You just got the 'contract'. You are hired by them. By you I mean Wipro, TCS etc. If Wipro dosent hire locals and make the bosses happy, there will be zero contracts, and then all the 'high brain quality' engineers will be begging on the roads.
Aau Replied to: mihir - 28 Apr, 2009
Haa haa haa..

Rolando Gomez Replied to: Aau - 28 Apr, 2009
this is completly rudiculus.. all know that india have high brain quality then why the companies hire from outside...
Akash Upadhyay Replied to: mihir - 27 Apr, 2009
hehe, you poor clueless soul. I work in the US and see the 'high brain quality' everyday. Bunch of fools. Please stop coming here and work for an Indian ORIGIN company please. Wait?! There aren't any? ? Keep looking, there are about 5-6. Not TCS and Wipro fool, they are living off work ORIGINATED in US.
Aau Replied to: Akash Upadhyay - 28 Apr, 2009
ya in this case how will they judge performance so foreigners r more intelligent than indians? what our IT industries want to prove? firing INDIANS and hiring white skins bullshit
Abhi Replied to: Akash Upadhyay - 28 Apr, 2009
Did you ask the same question when projects were outsourced ot India , then its your talent , when they go back , then they are idiots , How many of so called programmers , can code a mathematical differential equation , yes , good in C, C, java , but in India , we lack the understanding of meaning of things, Our Ancient indians , did but we kept following the so called white skins , and why do we indians complain when some one calls us cheap labour in EU or in anywhere as blacks, first try to be rational, then you can talk of being racial
dontcompromise Replied to: Abhi - 28 Apr, 2009