Indian IT-ITes firms ramp up US presence with prez polls in mind

This US election year, Indian IT-ITes companies have been ramping up presence in their largest outsourcing market, hiring more locals than usual and also setting up delivery centres in the remotest locations in that country.

The anti-outsourcing sentiment has indeed grown stronger in the last few months in the run-up to the elections and Indian IT firms are trying to do everything possible to humour the US.

As part of this, IT firms are trying to service American clients on-site by engaging more US nationals to do the job. Industry experts told FE that soon 5-10% of the Indian IT work force would be doing on-site work in US as opposed to outsourcing those jobs back to India.

Investments into US have grown thick and fast of late. Software services firm iGATE has committed to investing $1 million to start a new facility in Loudoun County creating 250 new jobs over the next two to three years.

Its new centre that involves technology consulting services for government agencies and businesses, is aimed at expanding its presence in Washington. Infosys is expanding its US operations with a new 125-seater delivery centre in Wisconsin and expects to hire up to 2,000 local employees this year. According to reports TCS, the country's top software services provider is also planning to set up a new facility in the US and bulk up its local team.

Similarly, Cognizant visited 17 campuses and added close to 200 students this year.

"In the last few months the anti-outsourcing sentiment in the US has grown stronger. With elections in November, the political rhetoric has gathered momentum. This is creating challenges for Indian IT players like increasing costs due to more overseas hires and greater scrutiny of visas," said Sanjeev Hota, Assistant Vice President Research (IT), Sharekhan.

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