U.S. coax Indian firms to generate more jobs
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U.S. coax Indian firms to generate more jobs

By SiliconIndia   |   Thursday, 31 December 2009, 09:37 Hrs   |    4 Comments
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U.S. coax Indian firms to generate more jobs
Bangalore: With economy coming to normal stage, but unemployment stuck at double-digit levels, states and municipalities across the U.S. are scrambling to persuade Indian companies to hire more number of local talents in the U.S.

This year, TCS has hired some 250 graduates of Ohio State University, the University of Cincinnati, and other nearby schools. Wipro Technologies, which had opened its center in Atlanta in March 2009, has now 350 employees; nearly 300 of them Americans, including senior managers recruited from U.S. tech rivals. Infosys Technologies, meanwhile, is planning an operation in Dallas to target some of the $52 billion the U.S. government will spend on outsourcing work in 2010.

All the American states, like Dallas, Atlanta, Minneapolis and Tallahassee have been actively courting Indian tech outfits. For Indian firms, U.S. facilities can mean more work on government and health-care projects; areas where laws prevent the transfer of data overseas. An on-the-ground strategy gives them access to local workers who can better understand cultural nuances. This may help Indian IT giants to compete against U.S. rivals IBM and Accenture, which tend to win lucrative consulting contracts that hinge on solving complicated business problems on-site, rather than simply writing computer code for cheap wages in India.

Sambuddha Deb, Wipro Vice President, who makes sure the company's India-based and foreign employees work seamlessly together, said, "We need to become more efficient, more sophisticated. It's not just about setting up software factories in India."

The major concern for Indian companies is that hiring Americans is far more expensive than shipping work off to India. TCS staffers in Milford, for instance, earn more than $50,000 per year, vs. the $7,000 to $8,000 that Indians doing similar work make in Bangalore.

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Reader's comments(4)
1: yes they are hiring locally that is true - but only when there is no way out ..like servicing govt contracts or health or banking related where the job cannot be offshorized and there is no available talent in house. But even then a significant number of people working onsite are on L1 visas which prohibit them from changing employers. Essentially these are slave masters.
Posted by:Duke Nelson - 31 Dec, 2009
2: What I don't understand is how the word "vs." is used. You can't compare things in different countries like that because the cost of living is different in each. And when they say "doing similar work" I wonder if that's true and would love to research what exact work is being done by each. Can anyone provide information to me as to what each job provides (USA and India).
Posted by:Christie Fox - 31 Dec, 2009
I'll reply to both points:
- You would have been right about the cost of living...but 10 yrs back. Right now, Bangalore is more expensive than you think, from rent to food. I would say it's on par, if not more expensive. In fact most metropolitan cities are quite expensive.
- Kind of work - It's interesting to note that programmers in India are quite smart and hard working. One unifying aspect about the 'work' in the software field is it's quite universal - Programming languages make us speak a common set of languages/script worldwide. Code written in the C programming language in India/China is(usually) readable here, unless it's badly written of course...and that brings me to my next point..quality. Well designed software is not easy to make. And i agree that a lot of the mid-level/senior 'architects' may not have the best design skills. But coming to the point that the author was making, 50K/yr is toward the lower end of the spectrum in the US for a software engineer/programmer, ie at a junior level. It is comparable with 7K-8K/yr for a junior/mid-level engineer in India.
Vivek Replied to: Christie Fox - 31 Dec, 2009
4: Do you really think that Indian companies will bother to hire more number of local talents in the U.S.
Posted by:shreyas - 31 Dec, 2009