July 01, 2010
By: by Arlene Chang, The Wall Street Journal
The much maligned outsourcing of business to India, which was said to have taken jobs away from the U.S., is seeing a small but significant reversal of roles.
An increasing number of Indian companies are setting up shop in the U.S. and are hiring or are in the process of hiring local U.S. employees in an effort to gain a stronger foothold in the country, bag more local projects and get closer to key customers.
CG Power Systems USA Inc., a subsidiary of Crompton Greaves Ltd. is the latest. The company, part of Indian conglomerate Avantha Group, recently announced the completion of its new transformer manufacturing facility in Washington, Missouri. According to the company, the facility was set up with an initial investment of $20 million and is expected to generate about 150 new jobs over the next three years.
"This new plant will help us gain access to new markets. More importantly, it will help generate employment for the local people," said S.M. Trehan, managing director, Crompton Greaves Ltd. said in a statement.
CG also recently tied up with the University at Albany's College of Nanoscale Science and Engineering to establish a $20 million center at the college to enable nanotechnology innovations that will fuel development and the use of clean, renewable energy technology. The company expects the center to create over 100 high-tech jobs in upstate New York.
In December, Infosys Technologies Ltd., set up a wholly owned unit in Dallas, Texas, to tap the multibillion dollar opportunities from government projects. Infosys is India's second-largest software exporter by revenue.
Tata Consultancy Services, India's largest outsourcer, also expanded their operations in Cincinnati last year and said it plans to hire about 1,000 employees in one year.