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HindustanTimes Fri,19 Sep 2014

Indian IT may step up local hiring in US

Manu P Toms , Hindustan Times  Mumbai, July 21, 2013
First Published: 20:55 IST(21/7/2013) | Last Updated: 20:58 IST(21/7/2013)

Onsite hiring by Indian information technology (IT) outsourcing players will go up with restrictive immigration policies taking shape in the US, the UK, Canada and Australia, the main markets for the country’s $100-billion (R5,97,000-crore) software industry.

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“Local hiring will go up. We have to be compliant. There is no other option. These countries are facing unemployment issues and the governments are focussed on creating employments for the locals. That is driving reforms,” said Ajoyendra Mukherjee, executive vice-president and global head, human resources, Tata Consultancy Services (TCS).

“We hired 3,255 employees overseas in the last quarter. We hired 500 in the US.,” he added.

This is almost a third of TCS’ gross hiring of 10,611 employees in the April-June quarter.

The US Senate recently came out with a new, stringent immigration policy. The House of Representatives, however, is yet to pass the bill. The US, incidentally, is the largest market for Indian IT players.

“We have planned out for various scenarios. They are difficult to talk about at this stage. Let the bill come out. The only thing we can say is that we will be compliant,” said Mukherjee.

Australia recently amended temporary work visa norms that debarred outplacement of resources and has increased lead time for hiring resources. Canada removed wage flexibility for foreign staff and suspended fast-track visa processing.

“All that they are saying there has to be a genuine effort to find out whether there is equivalent local talent. We continue to do so and it will have slight cost impact. But this will not shift the needle too much,” he said.

At present, 92% of TCS’ 2,77,586 employees are Indians while 8% belong to other nationalities. Following the increased local hiring, the nationality mix will change slightly in favour of foreign nationals.


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