Indian IT firms create more jobs in US than IBM

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I read this article recently and thought it quite interesting. It is from last July so not really hot-off-the-press, but worth noting.

Indian IT services forms are constantly criticised for taking the jobs of local workers in economies such as the US and UK. I don't doubt these claims, but when you read that Indian IT services firms have created more local jobs in the US over the last seven years than IBM it makes you think.

According to research from JP Morgan IBM created 138,000 jobs in the seven year period but they were all outside the US. In contrast Indian IT services firms created almost 40,000 jobs in the US.

I wrote an article back in 2010  about how IBM was considering reducing its workforce significantly. In fact a senior IBM executive at the time told Computer Weekly's sister publication at the time, Personnel Today, that it could reduce its workforce from 399,000 (in 2010) today to 100,000 in 2017.  The executive said IBM would re-hire the workers as contractors for specific projects and, when necessary, use crowd sourcing. IBM denied this and hasn't really started doing this, but it is the type of thing being discussed.

Combine this with the propensity of IBM and other IT giants to increase their offshore workforce and it might become the norm for Indian companies trying to increase local footprints in the US and UK, to employ more than local suppliers.

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This page contains a single entry by Karl Flinders published on February 24, 2014 11:01 AM.

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