Indian tech cos generated $103 bn revenue, employed 207K people in the US in 2021: Study

Indian technology companies are continuing to grow their presence in the US and are a vital part of the US economy’s innovation progress. This is evident as the Indian tech industry directly generated $103 billion of revenue in 2021, and directly employed 207,000 people in the US, with an average wage of $106,360, a 22 per cent rise in employment since 2017, as per a study by NASSCOM and IHS Markit.  

Going forward, Indian tech companies and their clients generated a total of $396 billion in US sales (output) and supported 1.6 million jobs. The industry contributed over $198 billion to the US economy, larger than combined economies of 20 US states.  

The study read, “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 and clients.”

It also highlighted that the Indian tech industry also made notable investments to build next generation talent. Indian technology companies have pumped in ~$1.1 billion and entered into partnerships with 180 universities, colleges, community colleges and others to strengthen and diversify the STEM pipeline in the US.  

Indian tech sector has also pumped in around $3 million more for K-12 initiatives, impacting 2.9 million students and teachers so far. The sector has also upskilled over 255,000 current employees.  

According to this report, demand for STEM occupations in the US is expected to grow 1.5 times faster compared to non-STEM occupations over the next decade. Around 70 per cent growth in job demand is likely to be driven by IT occupations, of which 51 per cent will account for STEM occupations by 2030.  

NASSCOM President Debjani Ghosh said, “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 per cent 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.”

She further said, “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.”