Going Local

A case of reverse offshoring, a growing number of Indian IT companies
opening centres overseas have resorted to hiring local
workers. With countries (read USA) blaming American companies of moving
jobs to India, the decision to hire local workers overseas comes as a
welcome move. Political consideration appears to have played a role in
taking this decision. Companies are also looking to expand in US, one
of the key markets in anticipation of their business picking up. US
Senators Bernie Sanders and Chuck Grassley introduced a legislation
that barred firms from hiring guest workers if they laid off 50 or more
local workers. Also, some Indian IT services companies have also been
for misusing H1B visa for replacing American workers.

Tata Consultancy Services (TCS) one of India’s largest outsourcer has
expanded its business alliance with Michigan-based The Dow Chemical
Company, including setting up a services facility near the
company‘s global headquarters in Midland, Michigan.
 In addition, the company also expanded a software services
delivery center in the Cincinnati suburb of Milford, Ohio. Under the
alliance, Dow and TCS also announced plans to set-up a new strategic
services center near the site of Dow’s global headquarters in
Midland, Michigan.

What’s more, plans are afoot to begin construction on a new
facility next year, with the first phase of the build-out designed to
accommodate 1,250 employees. This facility besides creating new jobs
would also support the local economy. In addition, TCS plans to expand
its service offerings beyond Dow in the future, creating a service
valley in central Michigan. The Dow-TCS alliance would provide
operational capabilities – including wide range of
capabilities from supply chain scheduling and planning, invoicing and
data management, to accounts receivable and payables. In future, the
tie-up would support a global network of service centers, including
strategic centers in Midland and Mumbai, India; plus satellite centers
in Shanghai, China; Terneuzen, The Netherlands and Sao Paulo, Brazil.

Following TCS, Wipro Technologies, the IT services arm of Wipro Limited
has also expanded its Atlanta development center for delivering
services and creating local jobs. The company’s Atlanta
development center has scaled up to 350 employees in the last nine
months with around 80 percent of the total headcount been hired locally
including alumni from  academic institutions in Atlanta like
Georgia Institute of Technology, Emory University, and Georgia State
University; experienced professionals; and retired army personnel.

The employees would support the North American companies in areas like
health care, manufacturing, telecommunications, utilities, retail and
financial services sectors. Infosys BPO, the business process
outsourcing subsidiary of Infosys Technologies too has acquired
McCamish Systems, a BPO company in Atlanta focused on the insurance and
financial services market. One has to take into consideration that in
order to become global players, Indian companies will have to go local
in their approach taking cue from Japanese auto manufacturers who set
up factories globally.   

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