U.S. slowdown hits Indian tech workers

Indian IT worker Ajay Jindal (left) farewells a colleague, Vineet Gogia, returning to India from San Francisco

In this story: Software professionals waiting on the bench 'Flooded with pleas for placements' RELATED SITES

By CNN's Shishir Joshi

MUMBAI, India -- Indians with Silicon Valley dreams are facing the heat of a US economic slowdown

India's technology industry says at least 40,000 professionals with valid work visas will return to India by July this year because of an absence of jobs in the U.S..

The Information Technology Association of America (ITAA) says U.S. companies expect to create 900,000 new jobs in IT this year, 44 per cent fewer than last year.

The bust in the dotcoms and a tumbling Nasdaq have forced the slowing U.S. economy to hand over pink slips to thousands of tech workers in the last six months.

According to the National Association of Software and Service Companies (NASSCOM), India's peak IT representative body, almost half the H1-B visa holders in the US tech sector are from India.

"The annual quota limit for these visas for Asians is 115,000, of which nearly 40 per cent of the US jobs are occupied by Indian software professionals," it said.

Software professionals waiting on the bench

Vishwas Pandya of Globespun Ventures, an Indian e-solutions company which also operates a placement agency, says: "Over 65,000 professionals (mainly Indian) from the East Coast are on the 'bench'' in the US earning a meager daily allowance of $30."

Dr Suhas Patil, former president of The Indus Enterprise (TiE) in Silicon Valley, says it's a trying time for jobless Indians with valid visas since the stay time limit is just ten days.

He says more than 100 B2B companies, mainly dotcoms in San Francisco's Bay area, have closed their operations in the last six months. Many of these mainly employed Indians.

Barely 12 months ago, India's hi-tech software professionals were in great demand in the US. Most were from South India, had an average age of 28 and won an average annual package of $45,000.

Now the tide is turning and many are returning home.

Gloom envelops India's much touted tech cities, notably Bangalore and Hyderabad. Body shoppers and placement agencies say the trickle back has already begun..

'Flooded with pleas for placements'

"We have been flooded with pleas for placements", says Ramji Rao, a body shopper.

"I had packed my bags and was awaiting my air tickets when my employers told me they won't need me for some time", says Vijay Guha, a twenty-something tech professional.

"I wonder whether going to the U.S. is a great idea, after all," says D. Sunil, a software aspirant.

However, S. Ramdorai, chief executive of India's largest software exporter, Tata Consultancy Services, says that high-end consultancy companies will not be affected.

"We have not felt any adverse impact," he said.

The Confederation of Indian Industry (CII), India's premier Industry representative, said it has faith that India can provide cheaper research and development projects.

NASSCOM
Silicon India

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