US may push IT cos for 50% local hiring

Mumbai, May 13 The US operations of top Indian IT Companies like Tata Consultancy Services (TCS), Infosys Technologies, Wipro, Satyam Computer Services and HCL Technologies are likely to take a hit, with the US keenly looking at introducing a “50:50” law, under which Indian IT Companies will have to employ 50% Americans in their US operations.

US Senator Chuck Grassley is expected to pursue the proposal and a final decision on this is largely dependent on the US presidential polls, according to senior industry sources.

Sources reveal that about 90% employees at the US offices of some top-rung Indian IT Companies are Indians. With the implementation of the “50:50” law, Indian IT Companies would have to shell out much more as salaries for foreign staff, which will have a bearing on the profitability of these Companies. Top-rung IT Companies, on an average, get 55%-60% of their revenues from the US. TCS derives 50% of its IT services revenues from the US (overall revenues of Rs 22,863 crore in FY 08), Infosys 62%, and Wipro 63%. TCS has about 14,000 employees in the US, Wipro has 8,100, Satyam 51,000 and Infosys has 91,000 employees globally, including the US.