Indian IT firms employ over 1 lakh in US: Report

Discussion in 'World Affairs' started by CaptainJackSparrow, Mar 23, 2012.

  1. CaptainJackSparrow

    CaptainJackSparrow SENIOR MEMBER

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    Posted in World Affairs because this involves the US as well.

    Indian IT firms employ over 1 lakh in US: Report


    NEW DELHI: India's $100-billion IT-BPO industry contributed over $15 billion towards the US treasury in the last five years, and about two lakh jobs to the US economy, said a report released by Nasscom in Washington DC on Thursday.

    Nasscom's report titled 'India's Tech Industry in the US' comes at a time when a looming election year has stagnated outsourcing decisions for US companies, which contribute about 65% to India's tech sector. It has made Nasscom lower the growth projection to 11% for the Indian IT-BPO exports this year.

    The report states that the direct workforce employed in the US by the Indian IT sector has almost doubled in the last five years to over 100,000. Nasscom said that even in a weak economic environment, Indian IT companies have robust local hiring plans.

    Aegis plans to add about 4,000 jobs in next two years, while HCL Technologies plans to hire about 1,000 people in US in next 18 months. TCS also plans to hire more than 1200 people. Releasing the report, Nirupama Rao, Ambassador of India to the US said that the trade engagement between India and the United States has been a long-standing relationship.
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    Indian IT firms employ over 1 lakh in US: Report - The Economic Times

    http://www.sacbee.com/2012/03/22/4358223/study-india-based-tech-firms-boost.html

    WASHINGTON, March 22, 2012 -- /PRNewswire-USNewswire/ -- India-based technology companies have doubled to 280,000 the number of people they directly and indirectly employ in their U.S. operations in the last five years, according to a new study by the National Association of Software and Service Companies (NASSCOM).

    The study, "Contribution of Indian Tech Companies to the U.S. Economy," also reaffirms U.S. government figures that show investments from India to the U.S. grew by 90 percent in 2010 from the year before, capping what has by now become a mutually-beneficial trend of growing commerce between the two countries. Trade between India and the U.S. has increased eightfold in the last 20 years, the study says.

    "Indian technology firms are deeply committed to the U.S. Both they and their employees are important contributors in their local communities as well as the country as a whole. The report that we have released is our endeavor to quantify the trends and benefits behind the significant investments India-based IT and BPO firms are making in the U.S.," said Som Mittal, President of NASSCOM. "The next phase of this partnership will see a continuation and vast expansion of the investments both nations are making in the other. We look forward to a greater engagement in the future, working closely with the U.S. companies to build their growth."

    Among the report's key findings:

    Indian foreign direct investment to the U.S. increased 90 percent between 2009 and 2010.
    From 2006 to 2011, Indian tech firms in the U.S. paid a total of $15.3 billion in federal taxes.
    Indian tech firms in the U.S. paid $3.6 billion in taxes in 2011 -- more than twice what the companies paid in 2006 ($1.6 billion).
    U.S. - India bilateral trade in merchandise, goods and services totaled $60 billion in 2009.
    Indian tech firms directly employ 107,000 people in the U.S. and support a total of 280,000 jobs.

    The report, conducted by Zinnov, a management consulting company, was unveiled today at a conference here at the Center for Strategic International Studies, that was also attended by India's Ambassador to the United States, Nirupama Rao.

    The report can be downloaded at Research | NASSCOM.

    SOURCE NASSCOM

    Study: India-based Tech Firms Boost U.S. Economy, Job Growth - PR Newswire - The Sacramento Bee
     
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  2. Developereo

    Developereo PDF THINK TANK: CONSULTANT

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    How many of these 100,000 are H1-B or recent Indian migrants?
     
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  3. CaptainJackSparrow

    CaptainJackSparrow SENIOR MEMBER

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    I guess 'contributing 1 lakh jobs to the US economy', by default means creating jobs in the US.

    Although, you do have a point.
     
  4. Developereo

    Developereo PDF THINK TANK: CONSULTANT

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    Most "foreign" consultancy firms I have worked with in the US and Australia were almost exclusively staffed by "their" people. Russian firms were 90% Russian, same with Indian, same with Vietnamese, etc. Haven't dealt with any Chinese IT firms, but I suspect the same pattern would prevail.
     
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  5. CaptainJackSparrow

    CaptainJackSparrow SENIOR MEMBER

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    Could be. I don't have the exact figures with me.

    However, contribution to the US economy as a whole cannot be over-emphasized.

    Not to mention the new 100,000 income tax payers in the US.
     
  6. Developereo

    Developereo PDF THINK TANK: CONSULTANT

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    Actually, H1-Bs don't pay full tax -- I believe SS tax gets refunded. If the same jobs were held by full residents, more of the money would stay in the US.

    These jobs are basically a migration pipeline; they further dilute the local job market and exacerbate the unemployment problem in the US. This hurts existing NRIs as much as everyone else.
     
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  7. Shardul.....the lion

    Shardul.....the lion SENIOR MEMBER

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    Test post.....

    Why I cannot post in Kashmir blast thread...??
     
  8. 53fd

    53fd MEMBER

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    Well said. On top of that, these types of consultancies are notorious in the US, & a lot of them are frauds as well.
     
  9. Abhishek_

    Abhishek_ BANNED

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    factually incorrect. H1-B guys pay full resident taxes, just like any other americans. and given the recent reverse brain drain happening, a significant number of Indian migrants contributed to the welfare system here without ever using it.
     
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  10. itsme

    itsme BANNED

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    i dont know abt aus. but here in canada and us, all engineering companies are filled with 60% chinese and 30% indians. i work in Advanced micro devices (AMD) as an engineering coop. its an american company and everyone in my team is a chinese or south korean, not a single white guy is even seen in my building. all engineering jobs in north america have been taken over by indians and chinese. so i wont be very surprised if indian company in us also has a similiar pattern.

    not just companies, i study in waterloo uni as ece. we consider ourselves lucky if we see 1 white kid in engineering class. u find them in 1st year but they dont last till 2nd and switch over to commerce or arts. i am not jooking. this is truth. the next gen of engineers is being dominated heavily by chinese and then indians.
     
  11. 53fd

    53fd MEMBER

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    They pay full resident taxes, but it gets refunded at the end of the year, which is correct. Likewise, unless you become a PR or a citizen, the same thing happens on the income tax.
     
  12. Developereo

    Developereo PDF THINK TANK: CONSULTANT

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    OK, I thought the FICA totalization agreement between India and US had gone through. I know India has been pushing for it for a long time, and concluded it with some European countries.
     
  13. protest

    protest FULL MEMBER

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    Do you know for certain or you just blabber? No Indians do pay SS and medicaid taxes but don't get it back.
     
  14. JayAtl

    JayAtl BANNED

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    do you even know how much SS is collected ? Do you know that the fee for H1 is much more than SS collected? I can't , well I can- believe how some guys are trying to make Indian companies ( who pay business taxes, make investments in the US) are somehow a net loss for the US. now only if the US Congress knew of these covert findings you guys have. I especially like the " when I worked in the US, most of these companies employ their own kind by 90%" . that is the most hilarious one to read to date.
     
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  15. bandit

    bandit BANNED

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    Wrong.

    SS payments are deducted as well. As most IT workers on H1b are highly skilled they pay comparatively higher taxes than average US citizen.

    In fact it is a loss to the Indian taxpayers, as they are not eligible to SS benefits unless they choose to Immigrate.

    Since majority of workers do not immigrate, we are in fact funding US citizens benefits. This should be taken up by the GOI and SS should only be deducted if one chooses to immigrate.
     
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