A recent study has shown that Indian IT companies made a massive contribution to the US economy in 2021 by though employment, investment, strategic partnerships, and business deals.
The sector employed over 2 lakh Americans and generated $103 billion in revenue.
The study, which was conducted and published by Nasscom and IHS Markit, showed that Indian tech companies hired 207,000 American employees in 2021 with an average wage of $106,360. This is a 22 percent employment growth since 2017.
The report, 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", revealed that the Indian IT sector had contributed a massive $198 billion to the American economy to date and facilitated sales worth $396 billion.
The report also mentioned that the Indian tech industry's investments in the US and contributions are helping build the next generation of talent in the country.
"The Indian tech sector works with more than 75 percent 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. The Indian technology Industry makes critical contributions to the US economy through local investments, fuelling innovation and the labour force, and enabling skill development for the local workforce"Debjani Ghosh, President, Nasscom (Source: IANS).
Ghosh also mentioned that the US has one of the largest gaps between demand and supply. According to the report, the Indian technology industry in the US is well positioned to help close the skills gap. They have invested significantly in growth-oriented strategies to skill, upskill and re-skill both their employees and people at all levels of education.
According to the report, Indian IT firms have also contributed $1.1 billion towards developing the STEM (science, technology, engineering, and mathematics) pipeline in the US and developed partnerships with over 180 universities, colleges, and other educational institutions to help identify and nurture talent.
The report predicts that growth in the demand for STEM occupations will be 150 percent faster than the demand for non-STEM occupations over the next decade. 70 percent of this growth will be driven by IT occupations, which are expected to comprise 51 percent of STEM occupations by 2030.
The Indian IT sector has also supported K-12 (kindergarten to 12th grade) initiatives with $3 billion worth of investments. This has reached 2.9 million students and teachers all over the US.
The sector has also helped in upskilling over 255,000 current employees.
"Strategic collaborations between both the nations, industry partners and the academia will be the key to plug this demand-supply gap and create growth-oriented solutions that focus on building human capital to further enhance the US economy’s competitiveness globally."Debjani Ghosh, President, Nasscom (Source: Economic Times)
The Indian IT industry has played a major role in expanding the talent pool beyond the established tech hub states.
The efforts and contributions of the Indian infotech industry have led to certain states like North Carolina, emerging as new tech hubs.
Such states have witnessed an employment rate growth of 82 percent. The report states that Indian IT companies have made significant contributions in states with below US average concentrations in IT talent.
The Indian IT sector's whooping contribution of $198 billion to the US economy is larger than the combined economies of 20 US states.
(With inputs from IANS)