Trump’s ongoing criticism of companies hiring overseas has benefited the United States once again.
India’s Infosys Ltd. now plans to hire 10,000 United States workers over the next 24 months, reports Bloomberg. Their announcement comes after the Trump administration criticized the company for unfairly removing jobs from the United States.
As an India-based IT services firm, Infosys plans to start hiring at their Indiana location by August. The move comes after Infosys and other Indian companies, like Tata Consultancy Services, became political targets by the Trump administration.
With the pressures put on the United States companies to hire within the country, and the threat of penalties later for hiring outside of the U.S., more companies are stopping their outsourcing overseas.
Furthermore, IT firms like Infosys rely on the H1-B visa program — something Trump plans to review and change.
In April, the Justice Department warned employers about their use of this special visa program, stating that companies cannot discriminate against U.S. workers. Also, the Citizenship and Immigration Services agency issued a memo regarding proposed measures that combat the fraud and abuse of the H1-B visa program. USCIS further stated that there is widespread abuse of the visa program, and federal agencies need to find ways to mitigate such.
US-Based Hubs to Come to the United States
While Infosys has U.S. locations, their home base rests in Bangalore. However, they announced that four United States hubs would open, starting with the site in Indiana. The site in Indiana will create 2,000 jobs by 2021, says their Chief Executive, Vishal Sikka.
During the statement, Sikka says that his company realizes the need to be local. They also realize that customers should trust the outsourcing services, which is why they need a larger presence in the U.S. However, to offer a mix of global and local talent, the company must outsource overseas still.
The Washington Post reports that Infosys wants a tight-knit culture, and they want to hire and train employees who come from local universities. As of now, the company has yet to announce the three other United States sites and how many jobs they will create in each location.
The Increasing Criticism of Outsourcing Firms
Outsourcing companies had received criticism from Donald Trump long before he was president. However, now that he is the president, he has made it clear that he does not tolerate companies taking away jobs from Americans.
Outsourcing firms like Infosys rampantly use the visa program to bring out-of-country workers into the United States. However, Trump’s forceful “America First” campaign is making these companies to think in the opposite direction. After all, these visas are reserved for highly skilled foreign workers, but Infosys and other outsourcing firms have used them to depress wages in the area and reduce American jobs.
In fact, some of these service companies are barely paying the foreign workers enough to meet the minimum wage requirement of that visa, which is $60,000 per year. Many of them are paid well below the tech sector average for their work, too.
United States workers would increase costs for these outsourcing firms, but employing more Americans and reducing the unemployment rate would be beneficial for the U.S. economy.
In March, Trump promised that he would work to protect American workers, and he signed an executive order to overhaul the visa program that allows experts to come in from another country — especially when qualified American workers are ready and willing to do the job.
Indiana’s governor praised the announcement and called it a game-changing historical move by the company and for the country.