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Fw: The Morning: A hiring binge abroad
Sent from Yahoo Mail for iPad Begin forwarded message: On Wednesday, March 26, 2025, 6:41 AM, The New York Times <nytdirect@...> wrote: The Morning: A hiring binge abroad Plus, the government group chat fallout, protests in Gaza and a Greenland reading list. View in browser|nytimes.com March 26, 2025 Good morning. Today you’ll hear from our colleague Alex Travelli, who reported from Bengaluru about what American companies are doing in India. We’re also covering the group chat fallout, protests in Gaza and a Greenland reading list.At the Pure Storage office in Bengaluru, India. Gabriela Bhaskar for The New York TimesIndia’s hiring binge By Alex Travelli I cover business and economics in South Asia. The biggest companies in the United States are on a hiring spree in India. They are building hundreds of overseas office parks. These aren’t call centers — they’re offices for Indian professionals employed by global companies to perform advanced tasks that, not long ago, Americans would have carried out. There are already 1,800 of these centers, and the rate of growth is doubling. They will soon employ two million Indians. President Trump wants to restore American manufacturing. He is preparing to impose tariffs on India, a move that he says will bring jobs back and close a $46 billion trade deficit. But tariffs reduce trade by making goods more expensive; they don’t affect services or offshoring, the practice of hiring workers overseas. Visa restrictions are equally irrelevant. The roles at these new centers are not for immigrants. They’re for people who want to stay in India and work for American companies. Today’s newsletter is about a new kind of offshore office park. Here, Indian workers are doing the kind of jobs that American workers envy — for American companies. We’ll cover the firms that are building them and the professionals who now staff them.Office space, then and nowWorkers in Bengaluru. Gabriela Bhaskar for The New York Times In the 1990s, banks and big tech companies realized they could send jobs to India, where wages are just a fraction of those paid in the United States. Many of these were positions Americans didn’t want to fill. Sweaty youngsters piled into rooms in the middle of the night to help American customers rebook their flights or learn whether warranties had expired. Now the roles are more advanced, and the people holding them often have graduate degrees. Workers are analyzing medical scans, writing marketing pitches, balancing budgets and designing state-of-the-art microchips — the kind of work that used to put Americans in the top tax brackets. It’s not just happening here. Japanese and British firms have set up offices in places like Mexico and Poland. But most of the multinationals are American, and most of these new centers are in India.Why white-collar jobs move America is reducing immigration, and its working-age population is shrinking. It’s harder than ever for companies to hire skilled workers. But the talent pool is nearly bottomless in India, which churns out roughly 10 times as many engineering degrees as the United States every year. So all kinds of companies are converging on six English-speaking cities in India. They include huge firms like Cisco and Target, which has a Bengaluru campus roughly the size of its Minneapolis headquarters. Bank of America is in Chennai. Hundreds of smaller companies have rushed in elsewhere, too. A third of the companies in the Fortune 500 have centers like these across the country, according to the American Chamber of Commerce in India. Workers there are managing publicity for new cellphone companies, developing apps, writing programs to detect fraud and, of course, hiring more employees for the same centers. I met one sight-impaired employee who was designing an interface that blind Americans will use to weigh and stamp packages. The pandemic sped up this transition because remote work made national borders irrelevant. Paroma Chatterjee, the country’s chief executive of Revolut, an online banking company that started in Britain, said that Covid had sh
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