| Hiring and pay rates are rapidly increasing in the top three outsourcing companies of India as they begin to send more work offshore in order to reduce costs. By adding 16,701 workers, Tata Consultancy Services, Infosys and Wipro broadened their global workforces last quarter by approximately 5.1 percent, which suggests that the Great Recession may actually benefit India. India’s outsourcing sector depends on the United States for nearly sixty percent of its global sales. The largest decline in the United States since 1990 occurred last year when inflation-adjusted wages dropped 1.6 percent.
An analyst at Mumbai's Kotak Securities, Dipen Shah, says, “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 predicts that the demand for offshoring will increase, and believes that offshoring is what has helped American companies to survive.
Infosys raised the wages of their employees eight percent last year in October, making it their first pay raise since April of 2008. Last week, executives reported that a second pay rate increase is currently being considered to avoid rising attrition. Their hiring target currently stands at about 24,000, and it is the second time they have raised the target number this year. Wipro executives also plan to offer their employees wage increases next month. Executives at Tata Consultancy Services confirm that they too plan to raise salary wages next quarter, making it one year since the previous raise.
Indian firms are increasing global hiring, even in the United States, although the U. S. is still only represented by a small fraction of their employees.
by Kate Barber
Please Login or Register for free to view to the full article. |
