Infosys to hire 12,000 more Americans – especially the cheapest ones it can find

No degree? No H-1B? No worries! Indian giant tickles Trump’s tummy


Indian IT services giant Infosys has pledged to hire 12,000 more American workers in the next two years and will prioritise graduate hires because they let the company grow while keeping costs down.

The price Infosys and its ilk pay for labor is a political hot potato in the USA, where it and other Indian tech services companies are an explicit target of president Donald Trump’s policy to restrict access to the H-1B visas that allow skilled workers temporary entry into the USA and a path to permanent residency. Trump accuses some companies of both killing local jobs by using offshore labour and using H-1B visas to get the workers needed in America on lower wages than US citizens would accept.

Infosys has combated such suggestions by pointing out it already hires lots of US locals and that its new pledge comes on top of a 2017 commitment to hire 10,000 American workers whose skills it will enhance at a substantial new training center in Indianapolis. The company says it exceeded that 2017 hiring goal and ended up taking on 13,000 American workers.

US visa illustration

Shocking no one, not enough foreigners applied for H-1B visas this year so US govt ran a second lottery

READ MORE

Infosys president Ravi Kumar pitched the 12,000 new hires as “digital jobs” that need the “skills of the future”. Infosys won’t just make poach rivals’ staff, he said, and will instead give the COVID-crushed economy a boost by hiring graduates, “individuals without traditional four-year degrees” and even students from liberal arts colleges and community colleges that might not be obvious candidates for careers in tech.

Which is where things get interesting because, in the interview below, Kumar said that this hiring plan will deliver costs comparable to the company’s current H-1B and offshoring practices.

“We will be hiring from colleges and design schools and community colleges where the per capita costs are lower,” Kumar said. “We have always believed we have to hire locally and amplify with global talent. Training is always expensive but if you are building from the ground up it will be viable enough for our businesses.”

All of which leaves Infosys close to where it started, with a structure that keeps its labor costs low even as it de-emphasises importing workers and makes just the kind of “bringing jobs to America” pledge that President Trump so adores.

Left unsaid is that travel restrictions around the world, and health risks created by the COVID-19 pandemic, make it unlikely that Infosys would be able to access much talent on H-1B visas even if the US government were more inclined to offer them. ®

Similar topics


Other stories you might like

  • Did ID.me hoodwink Americans with IRS facial-recognition tech, senators ask
    Biz tells us: Won't someone please think of the ... fraud we've stopped

    Democrat senators want the FTC to investigate "evidence of deceptive statements" made by ID.me regarding the facial-recognition technology it controversially built for Uncle Sam.

    ID.me made headlines this year when the IRS said US taxpayers would have to enroll in the startup's facial-recognition system to access their tax records in the future. After a public backlash, the IRS reconsidered its plans, and said taxpayers could choose non-biometric methods to verify their identity with the agency online.

    Just before the IRS controversy, ID.me said it uses one-to-one face comparisons. "Our one-to-one face match is comparable to taking a selfie to unlock a smartphone. ID.me does not use one-to-many facial recognition, which is more complex and problematic. Further, privacy is core to our mission and we do not sell the personal information of our users," it said in January.

    Continue reading
  • Meet Wizard Spider, the multimillion-dollar gang behind Conti, Ryuk malware
    Russia-linked crime-as-a-service crew is rich, professional – and investing in R&D

    Analysis Wizard Spider, the Russia-linked crew behind high-profile malware Conti, Ryuk and Trickbot, has grown over the past five years into a multimillion-dollar organization that has built a corporate-like operating model, a year-long study has found.

    In a technical report this week, the folks at Prodaft, which has been tracking the cybercrime gang since 2021, outlined its own findings on Wizard Spider, supplemented by info that leaked about the Conti operation in February after the crooks publicly sided with Russia during the illegal invasion of Ukraine.

    What Prodaft found was a gang sitting on assets worth hundreds of millions of dollars funneled from multiple sophisticated malware variants. Wizard Spider, we're told, runs as a business with a complex network of subgroups and teams that target specific types of software, and has associations with other well-known miscreants, including those behind REvil and Qbot (also known as Qakbot or Pinkslipbot).

    Continue reading
  • Supreme Court urged to halt 'unconstitutional' Texas content-no-moderation law
    Everyone's entitled to a viewpoint but what's your viewpoint on what exactly is and isn't a viewpoint?

    A coalition of advocacy groups on Tuesday asked the US Supreme Court to block Texas' social media law HB 20 after the US Fifth Circuit Court of Appeals last week lifted a preliminary injunction that had kept it from taking effect.

    The Lone Star State law, which forbids large social media platforms from moderating content that's "lawful-but-awful," as advocacy group the Center for Democracy and Technology puts it, was approved last September by Governor Greg Abbott (R). It was immediately challenged in court and the judge hearing the case imposed a preliminary injunction, preventing the legislation from being enforced, on the basis that the trade groups opposing it – NetChoice and CCIA – were likely to prevail.

    But that injunction was lifted on appeal. That case continues to be litigated, but thanks to the Fifth Circuit, HB 20 can be enforced even as its constitutionality remains in dispute, hence the coalition's application [PDF] this month to the Supreme Court.

    Continue reading

Biting the hand that feeds IT © 1998–2022