Election Year, Volatile Market Bring More Outsourcing Firms to US [Report]
The outsourcing market is becoming more volatile due to global economic circumstances such as the European debt crisis, a recent market report by the Everest Group concluded, but the big names are also facing a different kind of pressure. The top players have all started hiring more aggressively in the US in an effort to mitigate increased criticism during this election year, in addition to the negativity caused by a couple of high-profile legal clashes.
The Wall Street Journal aggregated some of the key figures. Tata Consultancy Services, the biggest publicly traded firm in India, plans on hiring 2,000 more workers in the States this year. It will open up a new center in Minneapolis where it will add a few hundred jobs, and it will also augment the workforce in Cincinnati by more than 40 percent to 700, according to chief exec N. Chandrasekaran.
“In every market we operate, we want to be tightly integrated with the communities there,” Chief Executive N. Chandrasekaran said in an interview. “In the U.S., it is important to create jobs there. It is important for us to be socially connected.”
Rival Infosys also intends to hire new 2,000 employees in North America.
Both TSC and its smaller rival, ranked the second largest first in India, are facing allegations of visa fraud. Infosys is up against a former accounts manager who was fired after he accused management of abusing visa laws, while Tata is facing a class action lawsuit for allegedly failing to provide full rights and compensation to its workers.
In the meantime, outsourcing has also become a central topic for both the Obama and Romney camps. Both candidates have brought the matter to the public’s attention over the course of the past few months.
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