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Challenges faced by Indian IT firms in while operating overseas


India’s $118 billion tech outsourcing industry is increasingly hiring engineering teams overseas. The major reason why overseas Indian IT organizations hire Indian engineering teams is because of the cost factor, as resources are cheaper than other developed markets. 

The biggest advantage that Indian engineering teams have is that the teams from India earn salaries in Indian rupees. While the tech organizations charge the US clients in dollars. 

Hiring local resources 

Today, Indian IT companies prefer to hire a large number of tech professionals in the home country. This is because the political sentiment around outsourcing has changed in the US. The liberal visa process that once allowed Indian tech firms to send employees to client location has turned hostile. Leading Indian IT firms are facing lawsuits for alleged discrimination in their hiring practices. 

The anti-immigration and anti-outsourcing agenda in the US has created pressure on Indian firms to hire local talent in the US. 

Overseas expansion 

Top tech firms including TCS, Infosys and their rivals are queuing up to hire skilled engineers to meet the needs of the changing market. These tech firms are increasingly hiring engineers, mathematicians, data scientists, sales and marketing professionals. With these companies having strong business demand in the overseas markets, they are hiring techies in large numbers. 

Indian IT firm, TCS has sourced 20% of its new employee requirement locally in the last 12 months, as reported by ET. Cognizant, which heavily relies on India for hiring coders has approximately 50,400 employees In North America and 13,800 in Europe. HCL Technologies has hired 17,000 workers in the US. Wipro has expanded its team in the US with 14,000 tech workers. 

The cost of overseas hiring 

Indian outsourcing companies are likely to face competition for talent in future. As these companies are expanding their overseas businesses, it has become crucial for them to spend money to nurture local talent. 

While tech companies spend top dollar for the best talent, they also hire in smaller numbers. Indian companies try to beat the wage inflation by locating their development centers away from major tech hubs. India-headquartered companies face challenge paying the market salaries to their overseas engineering team.

Source - Techgig