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Tuesday, January 8, 2013

Outsourcing Reverses As Indian Companies Hire In U.S.

Infosys Technologies employees break for lunch at company's headquarters in Bangalore, India in January 2011. The outsourcing giant is now hiring American workers. (AP Photo/Aijaz Rahi)

Infosys Technologies employees break for lunch at company’s headquarters in Bangalore, India in January 2011. The outsourcing giant is now hiring American workers. (AP Photo/Aijaz Rahi)

In a reversal of a longtime trend, Indian outsourcing companies are hiring American workers as they open and expand centers in the U.S.

The biggest Indian outsourcing company, Tata Consultancy Services, increased its hiring of U.S. workers by 25 percent last year, including back office workers in Midland, Mich. and information technology (IT) workers at a new center near Minneapolis, Minn.

Another Indian outsourcing giant, Infosys, opened its first center staffed primarily with U.S. workers last year outside of Atlanta, Ga.

A survey of outsourcing industry executives ranked the U.S. as the best place to expand IT and business-services delivery centers in the next two years. India ranked second.

Bloomberg editor-at-large John Helyar writes about the trend in the article “Outsourcing Turns Inside-Out as Indians Open U.S. Centers.”

Guest:

  • John Helyar, editor-at-large for Bloomberg News in Atlanta.

Please follow our community rules when engaging in comment discussion on this site.
  • http://www.ohioken.com Ken Palosi

    I am extremely happy to hear that some of our IT jobs are coming back to the U.S. For years I have made it a practice not to do business with companies that have outsourced their customer service jobs. Nothing is more irritating to me than to encounter a customer service representative that has no or very little english language skills.

  • Jeff in Vermont

    One of the problems with the outsourcing of high level  manufacturing jobs to countries with no substantial history of manufacturing, is that you lose context within the expertise.  I own a small Design Engineering firm in Vermont.  I am consistently taking away business from offshore countries, even though I charge higher rates, because I developed my expertise in the context of working at, or with companies like Rockwell, Boeing, and Chrysler.  Offshore designers can deliver their services for 30% less, but deliver a design that is difficult or impossible for their customers to manufacture.  This is because they have never worked within a manufacturing organization.

    Expertise without context is garbage.  I am sure that this axiom is true in many other fields. 

  • http://www.mohanbabuk.com/ Mohan

    Fascinating headline. But there again one swallow does not a Summer make. :-)

  • Michele

    I had a feeling that QUALITY would eventually become the determining factor in decisions regarding outsourcing.   Nice to see that more business are taking note of that aspect of the ROI equation.  

  • http://profile.yahoo.com/7TLEXLX4WKQ5RRMRVJJ4M7L4GY Against Treason

    Visa Fraud Sparks Many Arrests Nationwide 

    An ongoing federal probe into H-1B visa fraud leads to many arrests and the indictment of IT services firm Vision Systems Group The controversy over the H-1B visa program for cheap labor workers is heating up once again. Federal agents detained many Indians in six states as part of a wide investigation into suspected visa fraud, those arrested are accused of fraudulently representing themselves or other workers in immigration documents. Besides the arrests, Vision Systems Group, an IT services firm based in South Plainfield, N.J., with a branch office in Coon Rapids, Iowa, was indicted on 10 federal counts, including conspiracy and mail fraud charges. The firm allegedly used fraudulent documents to bring H-1B visa workers into the U.S. The government is seeking the forfeiture of $7.4 million from Vision Systems that was gained through the alleged offenses. Five other technology companies, including Worldwide Software Services and Sana Systems in Clinton, Iowa, remain under investigation for document fraud, prosecutors said.
    “We are only at the tip of iceberg as to where this investigation leads.

  • http://profile.yahoo.com/7TLEXLX4WKQ5RRMRVJJ4M7L4GY Against Treason

    H-1B’s are Highly Skilled at Highly Fraud 

    A federal lawsuit in Iowa alleges that two men orchestrated a scheme to underpay workers who came into the country on H-1B visas. Urbandale is a thriving residential suburb of Iowa’s capital city, Des Moines. Go to its Web site and you’ll see a picture of
    a charming gazebo and the claim that Urbandale is “a growing city that has held onto its small-town charm.” Part of that growth includes the U.S. headquarters of Pacific West, an IT consulting firm that employs both U.S. and H-1B visa workers from overseas.
    It is there, in a nondescript six-story office building at 2600 Aurora Ave., that dozens of skilled workers, mostly from India, were supposed to be working in 2004 and 2005. But according to a federal lawsuit filed on Dec. 16 in the U.S. District Court for the Southern District of Iowa, some of those who came to work for Pacific West didn’t get to enjoy the town’s charms, or the computer programing or engineering jobs they expected to fill. A federal grand jury charges that in fact many of the workers wound up
    on the East and West coasts, working for companies that had nothing to do with technology.

  • The_Madness_Must_Stop

    Myself and the people I know, would never work for these indian sweatshop outfits, come hell or high water. They are only doing even this token gratuity, on account of the flack they are getting from their fraud and deceit.   If this whole crisis ever blows over for them  (let’s hope it and work towards this not being the case ), they’ll be throwing these citizen workers overboard in short order. Don’t trust these companies, they would prefer not to hire you at all, they were the exact same people who not even 10 short years ago were saying how their goal was to take all of our jobs/everything that we’ve worked for…that’s who your dealing with, that type of mentality

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