Indian IT industry created 107,000 US jobs, paid $15 b in taxes
NEW YORK: A significant report released recently in the capital shows the Indian IT industry employs 107,000 people in the United States and that it has paid more than $15 billion in taxes to the US Treasury in the last five years.
The contribution review report “India’s Tech Industry in the US”, prepared by the National Association of Software and Services Companies (NASSCOM), a not-for-profit industry association for IT-BPO Sector in India, was released March 22, in the presence of Ambassador Nirupama Rao and Som Mittal, President, NASSCOM.
Jobs created in the US
While the overall unemployment in the US has been growing, 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 107,000 and estimates that industry supports more than 280,000 jobs in the US, growing even in a weak economic environment. Most of these indirect jobs span across various sectors and at every level in the US economy.
Leading Indian companies have increased their campus recruitment efforts in the recent years and plan to increase the number of offers made by up to four times in the next two years. These companies have increased their investments in the US local centers by increasing the number of seats by nearly 10 times in the last five years. The total seats are expected to grow by 50 percent in the next five years. California, Texas, New Jersey, Illinois, Michigan and New York account for 50 percent of the direct employment supported by the industry.
Contribution to US economy
The Indian technology industry has paid more than USD 15 billion in taxes to the US Treasury in the last five years thereby aiding economic recovery in the US. The Indian technology companies have invested more than USD 5 billion through 128 acquisitions saving and sustaining thousands of jobs in the USA. Growth in acquisitions by the Indian companies in the US increased to 54 percent in FY2010 from 41 percent in FY2009.
The industry has also made commitments to the innovation economy of the US by setting up innovation centers to drive next generation technology development. Also, innovative solutions from Indian companies are helping US citizens, viz. reducing cost of public services availed by citizens, improving healthcare systems and introducing new affordable products for daily use.
Creating value for American society
The Indian IT industry has made significant investments to develop deep roots in the American society by making valuable contributions by partnering with local communities. It is estimated that Industry has invested thousands of hours in community service that have touched half-a-million American lives.
Most of these efforts have been to strengthen the local healthcare, employability of the locals by building capacities, garnering support for the local causes and working towards the betterment of the less privileged segment. The companies remain committed to play role of good corporate citizens in the future, targeting to touch more than 10 times more lives through these sustained efforts. These efforts have been across the spectrum of US society.
Intended to offset the prevalent campaign rhetoric against outsourcing and job losses in the US, the NASSCOM report reveals trends on the significant contributions and investments that India based IT and BPO firms are making in the US.
The report highlights the general and specific contributions by the Indian technology industry in the US economy by job creation aiding economic recovery and developing deep roots at the local community level. It reiterates the fact that the Indian IT industry believes in building long-term partnerships with the United States, through mutually beneficial value-based commercial ties while integration with the local economy in the United States.
Speaking on the occasion of the report’s release, Amb. Rao said, “The trade engagement between India and the United States has been a long standing relationship. The enhanced partnership between the Indian IT Industry and its US counterparts has definitely opened newer avenues, paving way for the industry becoming an important partner to businesses in the US. I would like to congratulate NASSCOM for coming out with such an insightful report that highlights the commendable laudable effort that Indian IT industry has made in building a long-term partnerships with the United States, including through mutually beneficial value-based commercial ties expressed through job creation and integration with the local economy in the United States. I am confident that this engagement will continue to flourish and achieve greater heights in the future”
Amb. Rao observed that the Indian IT industry is one of the key constituents and stakeholders in the rapidly growing India-US relationship. She said that as the India-US Strategic Partnership has grown, so has the willingness of the Indian IT firms to populate it with concrete commercial underpinnings, both in the broader field of knowledge economy and the specific area of IT and a range of IT enabled services. She also stated that Indian IT companies are competitive and top end and only seek a level playing field in growing their business engagement with the United States.
“Indian technology firms are deeply committed to the US marketplace,” said Mittal. “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 US.”
Mittal further added, “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 US companies to build their growth”
The report specifically focuses on key prime areas – Jobs created in the US by the Indian IT industry, contribution to the US economy, and creating value for the American society.
India Post News Service