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The hype about Indian IT firms creating jobs in USA
Thursday, 26th May 2011
There is yet another story on reverse offshoring - or Indian companies creating jobs in USA by hiring local Americans.

Business Today reports that Infosys, India's second largest IT company, plans to hire 1,500 workers in the US, its biggest market this fiscal. Apart from BPO companies like Genpact, Aegis, TCS and Wipro, too, already have large centres in the US, with thousands of Americans employed.

There is no doubt that Indian companies are expanding abroad, setting up not just sales but delivery teams as well. They realise they have to offer true global delivery not just India-based delivery to win and run big accounts. There is political heat as well to do so.

But how large is reverse offshoring really? There are no numbers beyond anecdotal evidence of known Indian companies starting specific operations outside the country. If the numbers are aggregated, our bet is that they will pale when compared to the jobs already offshored to India.

There are several myths going around, which need busting. One of them says with the unemployment in the USA and wage hikes in India, the cost advantage in offshoring jobs has almost but disaapearted.

Business Today quotes Harish Bijoor, a BPO observer, who rightly says: that cheap US worker is a myth. "$14 per hour boils down to something around $112 (Rs 5,000) a day, and that is a decent wage for Indian BPO employers."

There are not many vice persidents who make Rs 5,000 a day inIndian BPO companies.

The real benefits in hiring BPO workers locally, are in the local knowledge, efficiency and increased 'socialisation' US workers provide, he says.

The article also points at a growing trend which Dell started. You want local (American) support pay more. If not, an Indian will take your call.
Publication : business Today
TAGS : reverse offshoring  


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