So, is this good for the US?India’s top three outsourcing companies are ramping up hiring and increasing pay as global corporations, mainly from the U.S., send more work offshore to cut costs as they emerge from the downturn.
Tata Consultancy Services, Infosys and Wipro expanded their global workforces by an average of 5.1 per cent last quarter, together adding 16,701 employees, company documents show - an early sign that the Great Recession may ultimately benefit India as cost-conscious companies outsource more work, just as they did after the dot-com bust.
cost savings from off-shoring has helped U.S. companies survive - and that’s good for the American worker.
“You might say jobs in the U.S. are getting displaced by jobs in India, but because of the value provided by Indian companies and lower costs, there are firms who are able to keep their heads above water and continue to employ their existing employees,” he said.
And how is this working for the financial bottom line of the corporations and employees in those firms in India?
After about a year of hiring slowdowns, all three companies are sweetening compensation as the fight to hold on to talented employees in India heats up.
Infosys offered its Indian employees an average 8 per cent pay hike in October, their first raise since April 2008, and executives said last week they are considering another raise to combat rising attrition.
“The market is heating up and we want to retain talent,” human resources director Mohandas Pai told reporters.
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