Infosys Attributes US Hiring Push to Tech Growth, not White House Pressures

Analysts warn that increased staff in America may bump up its labor cost by about $1 billion.


Infosys has stated that its decision to create 10,000 jobs in the United States is to deal with new technologies and changing business engagements, not to please the White House.

The Bangalore-based firm surprised the global sourcing industry last week when it announced a large-scale hiring strategy in the United States.

“These changes to our recruiting strategy are in line with our business requirements, which are impacted both by new technologies such as automation, as well as changing engagement models with clients,” Infosys said in a written reply to Nearshore Americas.

Local hiring will certainly help the company improve its relations with the U.S. administration, but analysts warn that increased staff in America may bump up its labor costs by approximately $1 billion.

Infosys is also launching four tech hubs in the U.S. to research new technologies such as artificial intelligence and machine learning.

“We will be investing in training the people who we hire in the U.S. to ensure that they have the requisite skills that we need to meet our clients’ needs,” said the tech firm in reply to a question as to how it would deal with talent shortage.

Infosys Foundation has trained 2,500 teachers and over 135,000 students in the United States over the past few years, according to the company’s press release.

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The IT firm has however ducked questions as to whether it is finding it hard to service its U.S. clients in the face of increased government scrutiny and the growing outcry over offshoring.

“Infosys is committed to American workers and continuously seeks opportunities to contribute to the U.S. economy, industry, and the local communities in which our employees live and work,” the company told Nearshore Americas.