Indian IT Cos Create More Jobs In U.S. Than Native Counterparts


"IBM's focus seems more on margins in the face of stagnant top-line trends; workforce re-organization towards offshore/lower-cost markets (such as India) and away from the US is perhaps one way of accomplishing this," write Viju K George and Amit Sharma of JP Morgan.

When it comes to Accenture, it U.S. headcount grew from 32,318 in 2008 to marginal 38,000 in 2012. However the total headcounts in U.S. declined from 18.6 from 14.8 percent in the same period. But JP Morgan estimates that Indian IT added 38,000 locals to its US workforce.

The study from J.P. Morgan points out the stark reality. Though the U.S.’s immigration bill allows firms like IBM and Accenture to avail H-1 B visas, the company’s headcount in the U.S. is low yet or are not organically creating incremental jobs for US citizens.

Currently the immigration bill imposes higher filing fees and wages for H-1 B dependent employers based on the percentage of non-immigrants employed in the company. Since the companies like IBM and Accenture have low numbers of employees on H-1 B relative to their total US workforce, they escape the higher visa costs, where as Indian IT companies with high employees on H-1 B results in visa costs shooting up.

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