IT Outsourcing India

Indian companies seem to be at the forefront of the reverse outsourcing trend, with the total employment generated by domestic entities in the US touching around 30,000.

The largest amongst all is the Tata Group conglomerate, which with its 16 diversified businesses, has invested more than $3 billion in the US economy till date and employs about 19,000 people. Similarly, Essar’s American operations generated more than $110 million in revenues last year and its staff strength has grown to 7,200 since 2000.

Essar is expecting to increase the number to 8,500 by 2009, according to a joint report by the US India Business Council (USIBC) and FICCI (Federation of Indian Chambers of Commerce and Industry). Interestingly, less than 30 of Essar’s employees in the US are Indian nationals.

Software and technology giants such as Wipro, Satyam and HCL have also been raising their headcount steadily in the US market, which accounts for the highest IT spend globally. Among the three software companies, Wipro has generated a pool of almost 8,000 jobs by supporting multinational companies such as Cisco and Microsoft. Satyam Computers, which clocked revenues in excess of $800 million, has employed 5,000 professionals, said the report. HCL Technologies, however, has a slightly lower headcount of 3,000 employees spanning a client base in 200 US cities.

“Indian employers and their American workers contribute billions of dollars to federal, state and local coffers by way of wages, corporate taxes, payroll taxes and income taxes. The ripple effects of these jobs and investments stimulate and enrich local economies nationwide,” stated the USBIC-FICCI report.

Auto maker Mahindra & Mahindra and pharma companies such as Ranbaxy and Wockhardt too have contributed to the US economy even though their employee base remains lower.

With over a decade of presence, Mahindra USA Inc, with a staff of 125, paid a cumulative salary of $5.1 million and $880,000 in state and local taxes.

Ranbaxy, which produces some of the drugs at its facilities in New York and New Jersey, has a combined strength of 600 employees, taking its payroll expenses to $35 million.

Wockhardt, the relatively newer entrant in the American market, had a staff cost at around $20 million by providing employment to 200 professionals, revealed the survey.

Source : http://www.thehindubusinessline.com/