Indian IT sector employs 2 lakh people and generates $103 billion in the US

CIOTechOutlook Team | Thursday, 14 July 2022, 04:48 IST

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In the US, the Indian tech sector directly employed 2,07,000 individuals, earning an average salary of $1,06,360, and generated $103 billion in revenue. According to a survey, employment has increased by 22% since 2017.

“From the value chain through to the end customers, Indian technology companies invest in American talent and technology that they augment with their global resources to develop and produce cutting-edge innovations for industries & clients," said the report by Nasscom and IHS Markit (now part of S&P global).

The US now has one of the widest demand-supply gaps when compared to other geographies, according to Debjani Ghosh, president of Nasscom. The Indian IT industry collaborates with more than 75% of Fortune 500 businesses, the majority of which are based in the US, and is thus ideally positioned to comprehend and address the crucial talent challenges of the digital age.

“The Indian technology Industry makes critical contributions to the US economy through local investments, fuelling innovation and the labour force, and enabling skill development for the local workforce," said Ghosh.

According to the report, the direct influence of the Indian IT sector has assisted the US economy in generating $396 billion in sales to date, supporting 1.6 million employment, and adding more than $198 billion to the US economy. In 2021, it will be bigger, it added, than the economies of all 20 US states put together.

The substantial investments the sector is making in the US and its dedication to expanding both its US employment base and aiding in the development of the next generation of talent were also mentioned.

To expand and diversify the STEM pipeline in the US, Indian IT businesses have invested over $1.1 billion and formed relationships with approximately 180 universities, colleges, community colleges, and other organisations. Additionally, it has added nearly $3 million for K–12 efforts alone. To far, these initiatives have had an impact on almost 2.9 million children and instructors. Additionally, the industry has upgraded the skills of more than 2,55,000 present workers.

Over 2,55,000 current employees have also been upskilled by the sector.

According to the report, during the next ten years, demand for STEM-related jobs in the US is anticipated to increase 1.5 times faster than that of non-STEM jobs. By 2030, IT occupations, which will make up 51% of STEM employment, are predicted to fuel almost 70% of the growth in this demand.

Meanwhile, in India, software firm HCL Technologies recently said it hired a total of 6.089 freshers for the quarter ended June 2022, with a total headcount of 210,966 employees at the global level. However, the attrition level still stood high at 23.8 per cent at the end of the first quarter of FY23.

India’s largest IT services company TCS has said it saw a net headcount addition of 14,136 employees during the June 2022 quarter. The company’s total workforce strength stood at 6,06,331 as on June 31, 2022, according to the filing.

Its attrition rate in information technology (IT) services stood at 19.7 per cent during the June 2022 quarter, higher as compared with 17.4 per cent in the previous quarter, TCS said.

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