Indian IT service provider Wipro is increasing the number of US
and European workers it employs so its customers in the regions
will not stop buying from
it
if protectionism increases.
President Sarkozy of France has
given French car makers billions of dollars in exchange for
promises not to shut French plants or sack French workers. The US
president, meanwhile, has a "Buy American" clause in his $789bn
economic stimulus package.
At the
launch of an All Party Parliamentary Group (APPG)in February,
designed to improve trade between the UK and India, IT suppliers
spoke about the dangers of protectionist economic policies.
Wipro, which employs 97,000, people, said it wanted to increase
the number of employees outside India, and itis easier now because
there are more available.
Currently, about 8% of its workers are from outside India.
Andy Gallagher, consultant at Compass Management Consulting,
said Wipro is not alone in increasing the number of staff it has
outside India.
He said certain roles are traditionally provided by staff local
to the customer or by people from India.
"The offshore/onshore model, where you fly Indian staff over for
a few months at a time,is losing its attractiveness. Clients are
beginning to say they do not get continuity when people come over
on 90-day visa. Also the cost difference between employing local
people and flying people from India is reducing."
He said more and more Indian companies are increasing their
localised workforce for roles such as account management and
relationship management.
Kris Lakshmikanth, CEO at Indian recruitment firm Headhunters,
said most Indian suppliers are increasing the number of European
and US workers they have. "Indiacannot be beaten on price for
development, but companies will employ staff local to regions they
are in for front line operations."
He said by the end of next year,these companies will employ
about 10% of their staff from outside the UK.