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Infosys is the latest IT company to respond to US president Donald Trump’s call to reduce the number of jobs in the US carried out by non-US citizens or being done offshore, with a commitment to US jobs.
The Indian IT service provider said it would increase its US workforce by 10,000 over the next two years and would open four technology hubs.
The company’s new US hubs will focus on emerging technologies, such as artificial intelligence (AI), cloud and big data. The first hub will open in August in Indiana in and is expected to have 2,000 employees by 2021.
“Infosys is committed to hiring 10,000 American technology workers over the next two years to help invent and deliver the digital futures for our clients in the US,” said Infosys CEO Vishal Sikka. “Learning and education, along with cultivating top local and global talent, have always been at the core of what Infosys brings to clients – it is what makes us a leader in times of great change.”
In 2013, Infosys agreed to pay $35m to settle a visa dispute with US authorities, involving alleged abuse of visa requirements when offshore staff are brought to the US.
And Infosys is not alone. Earlier this year, Accenture said it would create 15,000 highly skilled jobs in the US. Although it is a US company, about 130,000 of Accenture’s 400,000-strong global workforce are in India, and many of them serve US clients.
The company’s new investment and job creation will reduce its reliance on this overseas workforce. The new jobs will increase its US workforce to more than 65,000 by the end of 2020 – a 30% increase on today’s staff numbers.
Read more about Trump and IT services
- The IT services sector looks set to face a period of business uncertainty following Donald Trump’s win to become US president.
- Accenture has pledged to create 15,000 highly skilled jobs in the US in the latest sign that president Donald Trump’s desire to make more things in America spreads to the IT sector.
- The Indian government could respond to US president Donald Trump’s planned crackdown on the use of its IT workers by imposing its own rules on US companies operating in India, forcing the US administration to negotiate.
Although Accenture and Infosys did not cite political pressure as a reason for their plans, there is pressure on these companies to toe the line drawn by Trump because a large proportion of their customers are US-based.
A recent executive order from Trump will see US government agencies look at ways to reduce the number of immigrant workers in the country, including reducing the use of H-1B visas. This is part of Trump’s election campaign promise to encourage US employers to hire more US citizens.