NASSCOM-Indian Company Tech Industry contribution to US Economy
April 8, 2012
The National Association of Software and Services Companies (NASSCOM), a not-for-profit industry association for IT-BPO Sector in India, today released a contribution review on the “India’s Tech Industry in the US”. The report was released at a press gathering addressed by Ms. Nirupama Rao, Ambassador of India to the United States of America, and Mr. Som Mittal, President, NASSCOM. The report shares trends on the significant contributions and investments that India-based IT and BPO firms are making in the US.
Over 2,80,000 jobs are being supported by Indian companies in the US
Over 2,00,000 jobs for locals are supported by Indian companies in The U.S.
Increased the number of jobs for locals in U.S. by two times in the last five years
Contribution to the US economy
Invested more than USD 5 billion through 128 acquisitions in the US
Growth in acquisitions by the Indian companies in the US increased to 54 percent in FY2010 from 41 percent in FY2009
The industry has contributed over USD 15 billion towards the US treasury
Based on updated employment multipliers of the Economic Policy Institute (EPI) model, for every one direct job, approximately 1.6 indirect jobs have been supported in the ecosystem
Creating value for the American society
Indian companies have invested more than thousands of hours annually for CSR activities and have been able to touch more than half a million lives in the US
The review report highlights the general and specific contributions by the Indian technology industry’s in the US economy by job creation aiding economic recovery and developing deep roots at the local community level. The report reiterates the fact that the Indian IT industry believes in building long-term partnerships with the United States, through mutually beneficial value-based commercial ties while integration with the local economy in the United States.
Speaking on the occasion, Ms. Nirupama Rao, Ambassador of India to the United States of America said, “The trade engagement between India and the United States has been a long standing relationship. The enhanced partnership between the Indian IT Industry and its US counterparts has definitely opened newer avenues, paving way for the industry becoming an important partner to businesses in the US. I would like to congratulate NASSCOM for coming out with such an insightful report that highlights the commendable laudable effort that Indian IT industry has made in building a long-term partnerships with the United States, including through mutually beneficial value-based commercial ties expressed through job creation and integration with the local economy in the United States. I am confident that this engagement will continue to flourish and achieve greater heights in the future”
Mr. Som Mittal, President, NASSCOM, said, “Indian technology firms are deeply committed to the US marketplace. Both they and their employees are important contributors in their local communities as well as the country as a whole. The report that we have released is our endeavor to quantify the trends and benefits behind the significant investments India-based IT and BPO firms are making in the US. “
Mr. Mittal further added, “The next phase of this partnership will see a continuation and vast expansion of the investments both nations are making in the other. We look forward to a greater engagement in the future, working closely with the US companies to build their growth”
The report specifically focuses on key prime areas – Jobs created in the US by the Indian IT industry, contribution to the US economy, and creating value for the American society.
Jobs created in the USA
While the overall unemployment in the US has been growing, the report states that the direct workforce employed in the US by the Indian IT sector has almost doubled in the last five years to 107,000 and estimates that industry supports more than 280,000 jobs in the US, growing even in a weak economic environment. Most of these indirect jobs span across various sectors and at every level in the US economy.
Leading Indian companies have increased their campus recruitment efforts in the recent years and plan to increase the number of offers made by up to four times in the next two years. These companies have increased their investments in the U.S. local centers by increasing the number of seats by nearly 10 times in the last five years. The total seats are expected to grow by 50 percent in the next five years. California, Texas, New Jersey, Illinois, Michigan and New York account for 50 percent of the direct employment supported by the industry.
Contribution to the US Economy
The Indian technology industry has paid more than USD 15 billion in taxes to the US Treasury in the last five years thereby aiding economic recovery in the US. The Indian technology companies have invested more than USD 5 billion through 128 acquisitions saving and sustaining thousands of jobs in the USA. Growth in acquisitions by the Indian companies in the US increased to 54 percent in FY2010 from 41 percent in FY2009.
The industry has also made commitments to the innovation economy of the US by setting up innovation centers to drive next generation technology development. Also, innovative solutions from Indian companies are helping US citizens, viz. reducing cost of public services availed by citizens, improving healthcare systems and introducing new affordable products for daily use.
Creating Value for the American Society
The Indian IT industry has made significant investments to develop deep roots in the American society by making valuable contributions by partnering with local communities. It is estimated that Industry has invested thousands of hours in community service that have touched half-a-million American lives.
Most of these efforts have been to strengthen the local healthcare, employability of the locals by building capacities, garnering support for the local causes and working towards the betterment of the less privileged segment. The companies remain committed to play role of good corporate citizens in the future, targeting to touch more than 10 times more lives through these sustained efforts. These efforts have been across the spectrum of US society.