Tata Consultancy Services Ltd. is looking to set up a new software facility in the U.S. and scale up existing ones, as the Indian company seeks to step up local hiring there to blunt the growing backlash against outsourcing in its largest market.
India’s largest software company by sales plans to open in a few months its new center in Minneapolis where it will hire “a few hundred” Americans, Chief Executive N. Chandrasekaran told Dow Jones Newswires in an interview recently. The new center will cater to several clients in the region, he added.
He didn’t give any details of the investment for the center.
The Tata group company’s move comes at a time when outsourcing companies, perceived to be driving away jobs from the West, are facing immense political pressure to generate local employment opportunities in the U.S. as the nation grapples with stubbornly high unemployment amid slowing economic growth.
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“In every market we operate, we want to be tightly integrated with the communities there,” Mr. Chandrasekaran said. “In the U.S., it is important to create jobs there. It is important for us to be socially connected.”
Job creation has become a hot topic of debate in the campaign ahead of the U.S. presidential election due later this year.
TCS has four software centers in the U.S. — in Cincinnati, Midland, Phoenix and Milwaukee — where it employs nearly 3,000 local staff. The company’s total headcount was more than 240,000 at the end of June.
TCS’s latest hiring is part of an earlier-announced plan to add 2,000 more local staff in the U.S. in the current fiscal year that began in April.
Last year, TCS hired 1,600 local staff in the U.S.