Latest News – Indian information technology (IT) firms led by Infosys are now discovering that states in the United States (US) are offering incentives, including tax grants, to improve local employment.
Infosys will gain as much as $31 million if the company manages to fulfil its commitment of hiring 2,000 people from Indiana state. Infosys has committed a total of 10,000 jobs in the US as it increases local hiring to mitigate challenges of protectionism from President Donald Trump’s administration and starts engaging with local clients.
“While some may view this as giving into the President’s policies, it’s not different from how the Japanese automakers shifted production from Japan to the US in the 1990s,” said Ray Wang, founder and principal analyst of Constellation Research, a SilicValley-based technology research firm, in a recent interview.
In the 1990s, US states competed with one another to attract Japanese auto firms like Toyota to locate plants and offered incentives of as much as $1 billion to promote local employment. The move helped firms to decide on a location to set up plants, helping them localise production and (Read More)