Accessing the wide-ranging contribution of the Indian technology industry in the United States and its critical impact on talent, innovation, and the overall US economic growth, National Association of Software and Services Companies (NASSCOM) has today released 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 (now part of S&P global) the reports were launched in-person and virtually at the Wilson Center in Washington DC in the presence of US officials, industry executives, and key influencers. The event also served as the platform to announce a new and expanded partnership between NASSCOM and the Wilson Center.
A Catalyst For Economic Activity in The US
The Indian technology companies in the US continues to grow its presence and today is a vital part of the US economies’ innovation progress. This is creating a multiplier effect for their US suppliers, employees, and customers. As of 2021, the Indian tech industry has directly generated $103 billion of revenue and directly employed 207,000 people in the US with an average wage of $106,360, witnessing a 22% of employment growth since 2017. 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. The direct impact of the Indian tech industry in both operational and investment spending as well as supporting their client base, has rippled through the US economy generating a total of $396 billion in US sales (output),supporting a total of 1.6 million jobs and contributing over $198 billion to the US economy – larger than the combined economies of 20 US states in 2021.
The reports also noted the sizeable investments the industry is making in the United States and its commitment to growing both its US employment base as well as helping build out the next generation of talent. The Indian technology companies have contributed over $1.1 billion and developed partnerships with nearly 180 universities, colleges, community colleges, and others to strengthen and diversify the STEM pipeline in the US. It also has provided over $3 million more for just K-12 initiatives. These efforts have touched well over 2.9 million students and teachers to date. In addition, over 255,000 current employees have been upskilled by the sector.
Expansion of The Talent Pool
The Indian technology industry in the US has played a significant role in expanding the talent pool outside of traditional tech hub states. This has contributed to some of these states, such as North Carolina, becoming emergent tech hubs. Over the last decade, these states have grown their employment rate by 82%, making outsized contributions particularly in states that have below US average concentrations in IT talent. This has helped industries operating in those states accelerate their digital transformation capabilities with deep pool of IT talent.
Debjani Ghosh, President, NASSCOM said, “The Indian Technology Industry makes critical contribution to the U.S. 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% 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. 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.”
Addressing The Demand-Supply Talent Gap
According to the report, demand for STEM occupations in the US is expected to grow 1.5 times faster than non-STEM occupations over the next decade. Around 70% growth in this demand is expected to be driven by IT occupations, which will account for 51% of STEM occupations by 2030. In 2021, there were a total of 6 job postings for every 1 available computer and math worker in the US which has now become 11 open postings per available IT worker in 2022, leading to the widening of the global talent demand-supply gap. The Indian technology industry in the US is well positioned to close this STEM gap by putting emphasis on core skills and building foundational blocks to learning