Indian IT firms hire few U.S. workers

[OhioChick]

Indian business group blames 'skills shortage' for low hiring rate

April 4, 2011 04:47 PM ET

Computerworld - WASHINGTON -- Indian IT services providers hire relatively few U.S. workers -- about one out of every 10 of their U.S.-based employees is a U.S. citizen, according to a study by an Indian industry group that was released at a forum at the U.S. Capitol.

The Confederation of Indian Industry (CII) surveyed Indian companies across a variety of industries and found that in the majority of 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 companies 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., 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 the fact that only 10% of the U.S.-based employees of Indian IT companies are U.S. citizens puts a bright line around the need of Indian companies for access to the H-1B and L-1 visas. It also exposes their potential vulnerability to congressional action.

More: http://www.computerworld.com/s/article/9215479/Indian_IT_firms_hire_few_U.S._workers_

Snip "Indian companies are particularly worried about longstanding legislative efforts by Sens. Dick Durbin (D-Ill.) and Chuck Grassley (R-Iowa) to limit the percentage of H-1B visa holders in their U.S. workforces to 50%."

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1. recommend

[LongTomH]

2. K&R

Ohio Chick, you do a great service by posting all this!

[The Backlash Cometh]

3. And this surprises who?

[daa]

4. India Graduates Millions, but Too Few Are Fit to Hire

BANGALORE, India—Call-center company 24/7 Customer Pvt. Ltd. is desperate to find new recruits who can answer questions by phone and email. It wants to hire 3,000 people this year. Yet in this country of 1.2 billion people, that is beginning to look like an impossible goal.

So few of the high school and college graduates who come through the door can communicate effectively in English, and so many lack a grasp of educational basics such as reading comprehension, that the company can hire just three out of every 100 applicants.

India projects an image of a nation churning out hundreds of thousands of students every year who are well educated, a looming threat to the better-paid middle-class workers of the West. Their abilities in math have been cited by President Barack Obama as a reason why the U.S. is facing competitive challenges.

Yet 24/7 Customer's experience tells a very different story. Its increasing difficulty finding competent employees in India has forced the company to expand its search to the Philippines and Nicaragua. Most of its 8,000 employees are now based outside of India.

http://online.wsj.com/article/SB10001424052748703515504576142092863219826.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsFifth