India’s IT sector must present hard data on US economic contribution

Dispel the narrative that Indian IT companies are not doing much value addition in their biggest market.

In the wake of the United States imposing pressure, one after the other, on Indians, and Indian business interests in the US, India’s IT sector must come up with hard data on the economic impact it is making in that country, including creating local jobs. This is important to dispel the misconception gaining ground that Indian immigrants and Indian companies are detrimental to local interests. Choosing to stay silent under the assumption that a prickly issue like H-1B visas would get sorted out on its own may not be the right approach.

The reluctance to come up with a data-backed argument on how India’s IT companies and India’s IT workforce are making a positive contribution to the US economy could be misconstrued as an attempt to avoid being transparent. Moreover, passivity on the part of the Indian IT sector to showcase the value addition it is making in the US could also raise the possibility of such questions being asked in other overseas markets from where the sector derives its revenue.

After all, Indian citizens are the biggest recipients of H-1B visas.

A Fact Sheet issued by the White House said: “The H-1B program is creating disincentives for future American workers to choose STEM careers, which threatens our national security.”

“The share of IT workers with H-1B visas has risen from 32% in FY 2003 to over 65% in recent years. Unemployment among recent computer science graduates has reached 6.1% and 7.5% for computer engineering graduates — more than double the rates for biology or art history majors,” it read.

“American companies are laying off their American technology workers and seemingly replacing them with H-1B workers”.

Software industry body Nasscom must take the lead to ensure that India’s IT sector is better able to present its case on the economic contribution Indian IT majors are making in the countries from where it secures business.

Considering the importance of the US market for India’s IT sector, coming up with a data-backed study carrying details on the investments made (including on R&D, where applicable), local jobs created, taxes paid, etc., by Indian IT companies should be made a priority. This should be followed by similar studies for other key markets, like the UK, etc.

Such studies should become periodic, and ideally, independent agencies must undertake the studies to lend the reports more credibility.

There is no escaping the reality that winning the battle of perceptions is vitally important for companies in the volatile, uncertain, complex and ambiguous (VUCA) times we live in.

Indian IT companies likely losing out on opportunities due to their apparent inability to overcome the perception barrier would be unfortunate, as it could also have ramifications for the country’s growth and development.

Sumali Moitra is a current affairs commentator. X: @sumalimoitra.

(Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH)