TCS Hired 20,000 Americans To Reduce H1B Dependency; 2.5 Times More Hiring This Year

TCS Hired 20,000 Americans To Reduce H1B Dependency; 2.5 Times More Hiring This Year
TCS Hired 20,000 Americans To Reduce H1B Dependency; 2.5 Times More Hiring This Year

India’s largest IT services firm: TCS has informed that they are gradually reducing their dependency on H1b visa and for this, their strategy of hiring Americans is actually working.

What impact will this have on the overall IT industry in India?

TCS: We Hired 20,000 Americans In Last 5 Years

TCS Executive Vice President and Global Head – Human Resources Milind Lakkad has informed that TCS hired 20,000 Americans in the last 5 years.

The exact profiles for which the Americans wee hired has not been revealed. 

Infact, this year, that is FY2020, hiring of Americans has increased by 2.5 times, than their normal rate.

Milind said, “Every year, we hire hundreds of fresh engineering graduates and train them on new technologies. In FY2020, we hired over 2.5 times our usual fresher intake, and also made the training more account contextual, accelerating their ability to play productive, client-facing roles. For very short-term assignments, we use sub-contractors.”

Why TCS Is Hiring More Americans?

Since procuring H1b visa, which is the primary work visa issued by the US Govt is becoming harder, day by day, TCS has decided to reduce their dependency on H1B visa.

And the best way to do so is hiring Americans, for their projects based out of America.

This saves time and to some extent cost for TCS, recruitment is swift, and so is the delivery of projects. Else, they will have to wait for months to get H1b visa for their Indian employees, and then relocate them to the US, and then deliver the projects.

The high cost of employee acquisition in America is certainly being offset by quick delivery of projects.

Milind said, “Our delivery model has evolved over the last few years. Our Location Independent Agile promotes systematic collaboration across distributed teams and reduces the need for co-location.”

What It Implies For Indian IT Firms?

Last year, TCS had announced that they will hire 1500 freshers in the US, and this forced us to ask a question: Will this lead to less hiring in India?

Well, we are glad to say that nothing of such sort happened, and their hiring in India has actually increased, despite the slowdown due to coronavirus.

However, this trend of hiring Americans in American, instead of bringing in Indian employees via H1b visa is certainly picking up, other IT majors like Wipro, HCL, Infosys and others too are ramping up their recruitment activity in the US.

If such a business model helps these IT firms to survive and thrive, then this will certainly become the new norm.

Also Read:

Wipro Says Americans Are Better Than Indians In Coding, 65% Of All New Hires Are From USA!

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