For some time the popular perception in the United States is that IT companies in India to take away from the work of the Americans because of the cost advantage that Indians are able to offer. But with unemployment pressures mounting in the U.S., these companies are faced with a series of obstacles: Some states have the outsourcing of government projects forbidden outside the country, tax incentives for U.S. companies that offshore work was cut short; application fee for The H1B visas (temporary visas) walked, and so on.
There are other issues too. For example, Infosys Technologies is, what is widely known for its high ethical standards and transparency, that allegations of misuse of business visas to workers from India to send a long-term work. The case is under investigation in the U.S.
Infosys senior vice president and group head of human resources, Nandita Gurjar, recently moved to the U.S. The move is believed to result from the company's visa controversy. Gurjar itself, however, her transfer called "strategic" Talking Business Newsindia recently, she said: "I believe HR has focused outside and globalized, so is based away from the headquarters and on the ground where 60% of our business comes from will bring a greater strategic focus "Gurjar added that the closer the market will give her a" ground level understanding of the areas we need to address as a global corporation. "
One area that Gurjar strong focus on during her stint in the U.S. local recruitment will be.At its recent analyst meeting, Infosys revealed that by next year plan, it is the number of local employees at customer locations onsite and 50% increase. Infosys, which has a total employee base of more than 130,000, currently has approximately 27,000 employees at customer locations. Of these, about one-third local areas. With the U.S. accounting for the largest part of Infosys's revenues, the maximum local letting it happen.
Other Indian IT companies have similar plans. In its annual report for 2010-2011, Tata Consultancy Services, India's leading IT firm, noted that the protectionism in major markets is one of the main risks the company faces. "Restrictive legislation governing the free flow of talent in key markets to hamper operations and may disrupt the growth of this market prevent," the report said. One of the solutions to reduce this risk, "more local recruitment"
Wipro Technologies, plans are in the works to increase local rental spot locations - from about 35% currently to more than 50% over the next few years. According to Saurabh Govil, senior vice president, human resources, while the initial impetus for Wipro local job opportunities came from protectionist measures, two other key managers also play a role. "One, it's about creating the local leadership. To be a truly global organization is not about planting flags in various countries, but the building of local leadership. And two, with a local interface in the customer facing roles in understanding the cultural nuances and the greater convenience and value to help customers. "
K. Raman, practice head, infocomm, media and education at the Tata Strategic Management Group, believes that it is a step in the right direction. "Hiring local people in different markets to help Indian companies the various issues surrounding the visas to work. Also, given the situation in that market in terms of employment prospects, people are available at a more competitive salaries than in the case rather, that it can be a commercially sensible decision, "said he.
Raman points out that Indian IT companies are not only hiring more non-Indians, and they are also more vocal about their on-site accommodation because of the setback they had to face. "They want to sound politically correct," says Raman. He adds a note of caution: "Foreign job offers healthier margins than working locally. Indian IT companies need to get the mix of onsite and offshore workers at an optimum level so that the margins are not adversely affected ".
Can forced to rent expensive resources outside India had a positive result? Could it Spur Indian IT companies talk of non-linear growth for some time now to make a stronger push to make the way of looking at new business models and new growth strategies? "Yes," said Raman, "This could be an additional reason for Indian IT companies the delinking of income headcount to accelerate."
Meanwhile, a heart for the Indian IT companies. According to the latest data released by the U.S. Bureau of Labor Statistics, the IT industry has the lowest unemployment rate in the country. Between March and May this year, the unemployment rate in the U.S. IT sector has fallen from 4.7% to 3.8%. During the same period, however, the overall unemployment rate rose from 8.9% to 9.1%. Som Mittal, president of the Indian lobby group the National Association of Software and Services Companies (Nasscom), told Newsindia "about 3% -4% unemployment in a sector actually means that there is a shortage of the right employees take, not a shortage of work .... The issue of outsourcing and visas are misplaced. "
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