The Indian tech industry generated $103 billion of revenue and directly employed 2,07,000 people in the US with an average wage of $1,06,360. It was a 22 per cent employment growth since 2017, according to a report.
“From the value chain through to the end customers, Indian technology companies invest in American talent and technology that they augment with their global resources to develop and produce cutting-edge innovations for industries & clients,” said the report by Nasscom and IHS Markit (now part of S&P global).
Debjani Ghosh, president of Nasscom, said the US today has one of the largest demand-supply gaps as compared to other geographies. The Indian tech sector works with more than 75 per cent of the fortune 500 companies, most of them headquartered in the US and is, therefore, well equipped to understand and meet the critical skill challenges of the digital age.
“The Indian technology Industry makes critical contributions to the US economy through local investments, fuelling innovation and the labour force, and enabling skill development for the local workforce,” said Ghosh.
The direct impact of the Indian tech industry has helped the US economy generate a total of $396 billion in sales to date, supporting 1.6 million jobs and contributing over $198 billion to the American economy, according to the report. It added that it is larger than the combined economies of 20 US states in 2021.
It also said the sizeable investments the industry is making in the US and its commitment to growing both its US employment base as well as helping build out the next generation of talent.
The Indian technology companies have contributed over $1.1 billion and developed partnerships with nearly 180 universities, colleges, community colleges, and others to strengthen and diversify the STEM pipeline in the US. It also has provided over $3 million more for just K-12 initiatives. These efforts have touched over 2.9 million students and teachers to date. In addition, over 2,55,000 current employees have been upskilled by the sector.
Over 2,55,000 current employees have also been upskilled by the sector.
The report said the demand for STEM occupations in the US is expected to grow 1.5 times faster than non-STEM occupations over the next decade. Around 70 per cent growth in this demand is expected to be driven by IT occupations, which will account for 51 per cent of STEM occupations by 2030.
Meanwhile, in India, software firm HCL Technologies recently said it hired a total of 6.089 freshers for the quarter ended June 2022, with a total headcount of 210,966 employees at the global level. However, the attrition level still stood high at 23.8 per cent at the end of the first quarter of FY23.
India’s largest IT services company TCS has said it saw a net headcount addition of 14,136 employees during the June 2022 quarter. The company’s total workforce strength stood at 6,06,331 as on June 31, 2022, according to the filing.
Its attrition rate in information technology (IT) services stood at 19.7 per cent during the June 2022 quarter, higher as compared with 17.4 per cent in the previous quarter, TCS said.
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