While the US was struggling with the worst recession since the Great Depression of the 1930s, Indian companies saved thousands of jobs here through mergers and acquisitions (M&As), a study of 35 companies by the Confederation of Indian Industry (CII) and India Business Forum has shown.
“US operations of India-based companies are playing a key role in generating employment in the US while also investing significantly in research and development,” the study titled Indian roots, American Soil: A look at Indian Companies in the US economy has said.
The study also addressed a popular myth in the US that India is taking away jobs through outsourcing, without giving anything back. India is the second-fastest growing investor in the US, it said.
Breaking yet another myth, the study showed that Indian companies don’t staff their US operations only with workers from India. “More than 80 % of the employees are locally hired,” the study said.
Indian firms have “collectively saved 2,585 jobs from being eliminated through acquisition of US firms,” and continue to have major hiring plans, it said.
Tata Consultancy Service, for instance, “plan to hire 400- 600 more people (adding to its existing strength of 2,000),” said Surya Kant, president, North America, TCA.There have been around 45 M&As by Indian firms in the US since 2005, worth $5.0 billion.