Global IT Services Companies Create Hundreds of Thousands of Jobs and Contribute Millions to U.S. Economy and Local Communities, New IHS Markit Research Finds
WASHINGTON, March 11, 2019 /PRNewswire/ -- India-based and India-centric Global IT Services companies employ hundreds of thousands of U.S. workers and invest millions in the American economy, according to two new reports authored by IHS Markit.
The reports, titled The Economic Contributions of a Subset of Global IT Services Companies in the U.S. and Employment Trends for a Subset of Global IT Services Companies in the United States provide a first-of-its-kind examination of the Global IT Services Industry's operations in the U.S. The reports' findings include data on employment, the industry's workforce, total sales, labor income, investments in innovation, and charitable giving.
IHS Markit prepared this study for NASSCOM, the trade association representing the Global IT Services Industry. The findings from the study were based on data of more than 50 NASSCOM member companies with significant operations in the U.S. Global IT Services companies based out of India have an important history in the U.S., creating economic opportunity and growth for American businesses, and jobs for American citizens. But while India and the U.S. are natural allies, benefitting from mutually symbiotic ties across governments, businesses and people, the role of this sector in the American economy has not been studied in detail. To enable this, NASSCOM partnered with IHS Markit to conduct the first-ever exhaustive study of the impact of India-based and India-centric Global IT Services companies across the American economy.
"The findings from these reports prove what many in the industry already knew—that companies within this sector are key to America's short- and long-term economic prosperity," said Debjani Ghosh, president of NASSCOM. "In addition to creating high-skilled jobs for Americans and suppoting innovation and entrepreneurship, these companies also provide significant benefits to communities across the U.S."
The most significant findings from the report focus on the downstream economic and employment benefits provided by these companies' investments in the U.S. IHS found that for every 100 direct jobs at the companies examined in this study, an additional 193 jobs were supported across the U.S. economy. In total, IHS found these companies employed more than 175,000 U.S.-based jobs in 2018, and supported an additional 337,932 jobs across the U.S. economy—totaling more than 500,000 direct and indirect jobs.
Other key findings from the reports:
- Global IT Services companies added nearly $60 billion to the U.S. GDP in 2017.
- In 2017, Global IT Services companies paid $16.3 billion in wages to U.S.-based employees.
- In the past three years, Global IT Services companies have invested in 14 U.S.-based startups in fields like cybersecurity, chemical engineering, STEM education, and cloud computing.
- American workers are fueling employment growth at these companies. The share of employment of U.S. citizens and permanent residents increased 5-7 percentage points between 2016 and 2018.
- Employees at these companies are highly-skilled. The study found 61 percent of employees work in high-skilled computer occupations.
Findings from and analysis of the reports will be presented by IHS researchers, leading industry experts, former government officials, and leading academics during a release event from 10:00 a.m. – 12:00 p.m. at the Wilson Center in Washington, D.C. This event is the first in a series of events in 2019 based on a new partnership between NASSCOM and the Wilson Center. The collaboration will focus on hosting candid discussions on addressing challenges—old and new—in U.S.-India economic relations, as well as highlighting possible opportunities to expand economic relations. For more information on the release event at the Wilson Center, visit: https://www.wilsoncenter.org/event/roundtable-indian-investment
To view the reports, visit: http://growjobstogether.com/knowledge-center
IHS Markit prepared this study for NASSCOM. NASSCOM is the trade association for the Global IT Services Industry. NASSCOM member companies provide tens of millions in foreign direct investment in the U.S. to enable corporate innovation and growth. Indian companies are an integral part of America and the American economy and work to help U.S. companies adapt to evolving technological innovation. Partnerships between U.S. corporations and Global IT Services companies help provide the global talent needed to fill the current skills gap and to help prepare for future high skills needs.
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