Tech Mahindra will continue to invest in hiring more and more local people in the US as part of its efforts to augment competitiveness across locations, CEO CP Gurnani told a TV news channel on Wednesday.
“Tech Mahindra is very conscious that not only the US, but the world is about localisation now,” Gurnani said in an interview to ET Now on the sidelines of the ongoing World Economic Forum in Davos. “Local skills have to be upgraded so that the products continue to be getting delivered,” he said.
He was responding to queries on concerns about the US President-elect Donald Trump’s preference to protect jobs from immigrants for local American residents.
“Trump has been very clear he does not want the displacement of low-skilled workers. We provide only high-skilled workers,” Gurnani said, adding, “We help Trump in creating jobs.”
He said that the Indian IT industry spends $4-5 billion in the US, which helps the American entrepreneurs as well.
Tech Mahindra opened three new centres in the United States last year and now has six centres there. “We take a lot of grads from the college, skill them and put them into jobs, which create products, which makes the US more competitive,” Gurnani said.
You may also like to watch:
Indian IT helps in jobs creation in US, says @C_P_Gurnani in an exclusive conversation w/ @SupriyaShrinate. Listen in:#Davos2017 pic.twitter.com/Xc5REjqgkQ
— ET NOW (@ETNOWlive) January 18, 2017
Indian information technology service companies, bulk of whose earnings come from offshore clients in the US and other western markets, use H1B visas to send employees to the US to work with the clients on their projects. However, of late, it has created resentment among the US residents, who face tougher competition for jobs. Indian companies face new challenge with the incoming US President Donald Trump seeking to limit workers from other countries taking over jobs that locals could have had.
In response, the companies are seeking to hire more local people close to the client locations.
Earlier this month, the second-largest Indian IT firm Infosys said it is hiring more and more people locally in the US to engage better with the clients and foster innovation on the ground, notwithstanding the potential visa restrictions.
The largest company, Tata Consultancy Services, as well has begun to address these concerns proactively, it had said, adding that it has been making changes to its business models for the last one year, fully aware of the consideration that it will have to operate in a restrictive visa regime.
Gurnani said on Wednesday that while there may be obstacles in the short term, such as Brexit, foreign currency volatility, new laws, etc, but in the medium-to-long term Indian IT industry will do very very well.
“It is an opportunity for India. India has to get more aggressive in platforms, brick-and-click economy, creating products,” he added.