Not what Immigration Bill intends to achieve

Written by Saikat Neogi | Updated: Jul 25 2013, 06:10am hrs
While one of the intents of the US immigration Bill is to ensure that Indian companies dont see the US as an onshore destination to ship workers, the fact is over the past 6-7 years, Indian software companies have created at least 35,000 jobs in the US for the locals. In contrast, US-based IBM, the worlds largest technology services company, has reduced its US headcount by over 35,000 employees over the last 6 years despite the companys ongoing acquisitions in the country over this period.

A report by Viju K George and Amit Sharma of JP Morgan India says that IBM, with 135,000-plus employees in India, has more employees in India than any other country. As a part of work-force balancing IBM has been continually rationalising its employee head-count in the US, while rapidly scaling it up in India and other lower-cost locations, says the research note.

Similarly, Accenture has marginally added to its workforce in the US. While the companys current US employee headcount is around 40,000, it has twice the staff in India. In fact, like IBM, Accentures India staff has nearly tripled in the past 6-7 years.

So, the Immigration Bill, which has been passed by the Senate but the House is in favour of a piecemeal approach, will put companies like IBM and Accenture at an advantageous position as compared with Indian IT firms. But given these firms track record of job creation in the US over a reasonable time frame, it does not seem to square up with the one of the Bills intents.