- Friday, April 26, 2024
By: Shubham Ghosh
THE Indian tech industry has directly generated revenue worth $103 billion (£86 billion) and gave direct employment to 2,07,000 people in the US with an average wage of more than $1,06,000 (£88,798), which marks a 22 per cent rise in employment since 2017, a report from The National Association of Software and Service Companies (Nasscom), an Indian non-governmental trade association and advocacy group, said.
“From the value chain through to the end customers, Indian technology companies invest in American talent and technology that they augment with their global resources to develop and produce cutting-edge innovations for industries & clients,” Nasscom said in its reports titled “Impact of Indian Technology companies on the US Economy” and “Building the current and future US workforce: role of the Indian technology industry in the US”, commissioned by IHS Markit, the Hindu BusinessLine reported.
The direct influence of the Indian tech industry in both operational and investment spending and supporting their client base has caused a ripple in the American economy by generating $396 billion (£331 billion) in US sales (output), supporting 1.6 million jobs and contributing over $198 billion (£166 billion) to the North American nation’s economy, which is more than the combined economies of 20 US states last year, Nasscom said.
The reports also spoke about sizeable investments the industry is making in the US and its commitment towards growing both its American employment base and the next generation of talent, the BusinessLine report added.
The Indian technology firms have contributed more than $1.1 billion (£921 million) and developed partnerships with around180 universities, colleges, community colleges, and others to strengthen and diversify the STEM pipeline in the US.
Debjani Ghosh, president of Nasscom said, “The Indian technology Industry makes a critical contribution to the US economy through local investments, fuelling innovation and the labour force, and enabling skill development for the local workforce.”
“The US today has one of the largest demand-supply gaps as compared to other geographies. The Indian tech sector works with more than 75 per cent of the fortune 500 companies, most of them headquartered in the US and is therefore well equipped to understand and meet the critical skill challenges of the digital age,” she added.
The demand for STEM occupations in the US is expected to grow 1.5 times faster than non-STEM occupations over the next decade, the report said. Around 70 per cent growth in this demand is expected to be driven by information technology (IT)-based occupations, which will account for 51 per cent of STEM occupations in another eight years.
In 2021, a total of six job postings were there for every 1 available computer and math worker in the US. In 2022, 11 open postings were seen per available IT worker, the report said.
