Indian IT firms hire few U.S. workers

04.04.2011
The Confederation of Indian Industry (CII) surveyed Indian companies across a variety of industries and found that in the majority of industry sectors, about 80% of their U.S. workforces were local hires. The exceptions were in the IT and business-process outsourcing (BPO) industries, where Indian firms relied mostly on visa-holding workers.

The IT and BPO industries "seem to exhibit less dependence on the U.S. workforce," the CII report said. "This may be explained by a skills shortage in the U.S., as well as the availability of a highly qualified Indian workforce that dominates the IT and BPO sector not only the U.S. but also globally."

The CII study illustrates the contributions that Indian businesses make to the U.S. economy. But a 10% of U.S. workers by Indian IT firms also puts a bright line around the need of Indian companies to have ready access to the H-1B and L-1 visas. It also exposes their potential vulnerability to .

Indian companies are about longstanding legislative efforts by U.S. Sens. Dick Durbin (D-Ill.) and Chuck Grassley (R-Iowa), that would limit H-1B holders to 50% of their U.S. workforce.

Among those at the forum was Meera Shankar, India's ambassador to the U.S., and lawmakers including U.S. Rep. Jean Schmidt (R-Ohio).

Schmidt praised Tata Consultancy Services, which employs about 450 people at its North American Delivery Center in Milford, Ohio. "We found a partner with Tata," she said.