Indian IT Industry

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vimal
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Re: Indian IT Industry

Post by vimal »

^^ I surprised at those numbers they seem pretty low to me even by Indian standards.
I used offer those 20-25 LPA salaries to Masters candidates fresh out of college in India during our campus recruiting drive 10 years ago. These were tier 2 colleges mind you.

Those are not amazing salaries by any stretch just that some fat cats catching up to the reality of talent loss and great resignation.
Ambar
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Re: Indian IT Industry

Post by Ambar »

RajaRudra wrote:Some of the CTCs i am hearing about in the last couple of months are mind boggling

Person 1 - Scrum Master - Total 14 (5 years as Scrum Master) - 35 LPA (125 % increase in new job)
Person 2 - Third Year College - Campus - 18 LPA
Person 3 - React Developer - 4 years experience - 24 LPA (from 6 LPA)
Person 4 - Testing - 8 years Exp - 27 LPA (From 7 LPA)
Person 5 - 2 Years exp - Support - 8 LPA (from 3.5 LPA)

Indian IT Industry Salary Structure is getting normalized in higher trajectory.

While those numbers don't surprise me much, it must be said that not every job seeker in IT gets to see such offers. Offers of Rs 25+ LPA even today is for the top 10 % to top 15 % of the candidates or those who have significant experience in a particular field in IT. It hardly needs mentioning that over the last 25 yrs or ever since the great IT boom of the mid-90s, the number of STEM graduates in India has exploded but the quality of technical education has sunk like a rock ! This is precisely the reason why you see thousands of engineering seats go vacant in private colleges each year ( KAR and TN both had over 40k unfilled seats in 2020 ). AICTE has also stopped accreditation to institutes intending to start engineering courses, and existing institutes are either closing certain streams of engineering or reducing intake by upto 25%. Bottom line, while grads from IITs, RECs, good govt aided institutes will always have companies chasing them with attractive offers, for grads from private colleges, especially those in the bottom 80% (who make bulk of the fresh grads or current workforce) the reality is a lot different. Linkedin is a bit of an eye opener, you see so many 20 somethings with a BTech or MTech degrees underemployed in fields completely unrelated to their education (ex : HR, recruiters, marketing, administrative work etc). It will get even harder as automation picks up and hence it is imperative that the government prioritizes manufacturing and makes vocational training like ITI attractive again.

All that aside, i do wonder where the outsourcing industry is headed. When the outsourcing took off in the 90s it was common to see wage arbitrage advantage of 1:10 or sometimes 1:20 between US and India (ex : a developer position that cost a company $80k p.a in the US could be done in India for as less as $5k p.a ), those ratios no longer exists. It is still attractive around 1:3 or 1:4 but when you factor in more expensive real estate, administrative and security overheads, attrition and high wage inflation the advantage of outsourcing is eroding. The one thing working in Indian IT's favor is our sheer number, as they say sometimes the quantity itself is quality.
Vayutuvan
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Re: Indian IT Industry

Post by Vayutuvan »

problem is our IT consulting companies do not have a product culture. When ethey were small they had some pint solutions here and there. thye simply do not have the culture of keeping the product groups going. my experience was everyone waned to get into the latest buzzword projects. the system analysis, sizing, project management, and management. they should not buying assimilate product cos. better route is to buy, keep them separate, and send this who are technically capable and willing to those subsidiaries.
RajaRudra
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Re: Indian IT Industry

Post by RajaRudra »

vimal wrote:^^ I surprised at those numbers they seem pretty low to me even by Indian standards.
I used offer those 20-25 LPA salaries to Masters candidates fresh out of college in India during our campus recruiting drive 10 years ago. These were tier 2 colleges mind you.

Those are not amazing salaries by any stretch just that some fat cats catching up to the reality of talent loss and great resignation.
May be i belong to the bottom half. This numbers are 'god sent' for my self and many of the friends. As told by Amber in another post..I was not from IIT (not even know how to prepare for the entrance at that time), REC, heck not even from tier One, two or tier three city. Not even a BE, Just a BCA from early 2000s.

Came to know about campus recruitments after i joined a MNC and was asked to help with campus process.

As a non engr graduate from early 2000s life is a battle field from early stage. 70% college mates will settle locally with what ever job/businesses.
20% will go for MCAs and MBAs. That 10% like myself will do the adventure journey of traveling to the cities of Bangalore/ Chennai.

Life is a little tough, Money will come from home but with lot of stings attached(just like buying arms from US) for monthly expenses and stay will be shared along with friends.

Every interview will teach something new. I started spending more time with PC than in my project days.

Firts Job - 3500 rs monthly Salary in 2005. It was a small production/Testing company and they are trying to computerize thei billing. We are a team of just three people are fresh graduates with no prior professional experience. It was a wonderful experience getting the raw requirement and converting the same into a technical requirement all by our selves and parallelly designing a bit of UI(the great VB 6.0) and Data Base (SQL SERVER). We all three decided to use the VB 6.0 and SQL Server because that is the only thing we know). Unknowingly the way we delivered is agile. We specifically don't want to plan very far because we want to finish as early as possible and get a new job with good salary. Work timing is Morning 9 to night 11 PM - no pressure from any one, Out of Sheer excitement.

Second Job in 2006 to 16 - Salary multiplied several times- First time out of India. It was exciting as an environment but felt like hands are tied and no experimentation. Management is excellent and are filled with people who understand the technicality. No need to negotiate and haggle around to get the increments. WFH - India from 2013 to 2016 with all the benefits. IT Development outsourced to another company.

Third and Current Job From 2016 - This is the company development got outsourced to. Bangalored. Was contacted by the delivery manager and offered me less that 1/2 of my current CTC. He told, this is September and so no budget but can get the original salary offered from January. My previous exp of 2006 to 2016 made me believe as it is and i had accepted. Then the same person become Director in January and no more responding to my emails. The new person who comes to post of DM has no idea about the promise. In the meanwhile outsourced project - about 50 products are going to hyenas. Very few development works are happening with knowledge why they are doing that, all are done in the way of ' Monkey Say, Monkey do'. Soon the project gone out of hands to Accenture .

Was allocated to another oil and gas major project. Here technical and knowledge enhancement opportunity is excellent. Product we are developing is exciting and path breaking and our user base is geologists(very few in numbers). In all this happy environment my package is still not even at my 2012 level.

Now, i am trying to change the Career path to non technical as i find my self not able to spend time and energy in keeping my self updated technically and i find the role of scrum master more passionate.

a) My technical experience will help in identifying bottle necks in advance.
b) Can easily find the process improvements
c) MVP - Can understand from the technical point of view

But here again issue is the current project will not release the resource because Client marked the resource as Critical.

I think, only option now i have is to put paper and do the adventure just like 2005. :)
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Re: Indian IT Industry

Post by arvin »

RajaRudra wrote: Now, i am trying to change the Career path to non technical as i find my self not able to spend time and energy in keeping my self updated technically and i find the role of scrum master more passionate.
Sincere suggestion is never give up your technical skills. Those once lost will be difficult to re-learn. Even if the role doesnt demand technical skills, never give up whatever you were good at doing, if the tech is still used. Lot of new age technologies around to learn and skill shortage is severe.
RajaRudra
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Re: Indian IT Industry

Post by RajaRudra »

arvin wrote:
RajaRudra wrote: Now, i am trying to change the Career path to non technical as i find my self not able to spend time and energy in keeping my self updated technically and i find the role of scrum master more passionate.
Sincere suggestion is never give up your technical skills. Those once lost will be difficult to re-learn. Even if the role doesnt demand technical skills, never give up whatever you were good at doing, if the tech is still used. Lot of new age technologies around to learn and skill shortage is severe.
Thanks for your concern and advice arvin.
Ambar
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Re: Indian IT Industry

Post by Ambar »

RajaRudra wrote:
vimal wrote:^^ I surprised at those numbers they seem pretty low to me even by Indian standards.
I used offer those 20-25 LPA salaries to Masters candidates fresh out of college in India during our campus recruiting drive 10 years ago. These were tier 2 colleges mind you.

Those are not amazing salaries by any stretch just that some fat cats catching up to the reality of talent loss and great resignation.
May be i belong to the bottom half. This numbers are 'god sent' for my self and many of the friends. As told by Amber in another post..I was not from IIT (not even know how to prepare for the entrance at that time), REC, heck not even from tier One, two or tier three city. Not even a BE, Just a BCA from early 2000s.

Came to know about campus recruitments after i joined a MNC and was asked to help with campus process.

As a non engr graduate from early 2000s life is a battle field from early stage. 70% college mates will settle locally with what ever job/businesses.
20% will go for MCAs and MBAs. That 10% like myself will do the adventure journey of traveling to the cities of Bangalore/ Chennai.

...
Like i said, 80% of job seekers in Indian IT don't see offers like the ones you have mentioned above. That said for those who are really good at what they do and with some experience behind them the salaries when adjusted to purchase power parity(PPP) are on par with the west. From chip designing to robotics and AI, even a pay of Rs 70 LPA isn't uncommon. It is all too common in Indian IT for those with over 15 yrs of experience to start dropping off the learning curve when it comes to new technologies. This has resulted in bloated middle-management which has somehow survived until now because of our sheer workforce size but does not bode well for future. We saw a glimpse of what is coming in 2017-18 when many Indian based IT companies doing RIFs specifically targeted staff with over 10 to 15 yrs of experience and those in lower to mid-management. Hence it is imperative to continue to hone your technical skills so even if the inevitable sword someday strikes one's neck, one can still pursue roles as a individual contributor or consultant.
titash
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Re: Indian IT Industry

Post by titash »

arvin wrote:
RajaRudra wrote: Now, i am trying to change the Career path to non technical as i find my self not able to spend time and energy in keeping my self updated technically and i find the role of scrum master more passionate.
Sincere suggestion is never give up your technical skills. Those once lost will be difficult to re-learn. Even if the role doesnt demand technical skills, never give up whatever you were good at doing, if the tech is still used. Lot of new age technologies around to learn and skill shortage is severe.
^ +108,

All companies have pyramidal structures, and there's lesser and lesser room as one goes up the ladder. For IT labor companies, when the axe falls, the middle management (i.e. non-direct revenue billing team leads, project managers, program managers, presales / go-to-market techies, etc.) is going to be trimmed and the survivors will find their workload going up 2x

Those days of getting into a government / banking / PSU job with low stress, negligible workload in your 40s, and subsidized housing in top notch colonies, are gone. You have no choice but to keep learning and reskilling. At the very least you should never give up your technical skills, so the individual contributor / consultant role is always open

Funnily enough, even though my attention span is next to nothing as I hit mid 40s, I have a lot more enthusiasm to learn computer science, cybersecurity, embedded systems, controls, mechatronics, machining, etc. and try to build new software, robots, UAVs, etc. and possibly venture out on my own. I never had this confidence or enthusiasm in my 20s. So I guess it's a function of when Pitta Dosha manifests in an individual and/or Maslow's theory beckons
SBajwa
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Re: Indian IT Industry

Post by SBajwa »

Do not lose your technical skills rather start learning new ones like Python, R, Statistical languages, etc. The industry is moving towards analyzing the data predicting the future (AI, ML).
titash
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Re: Indian IT Industry

Post by titash »

SBajwa wrote:Do not lose your technical skills rather start learning new ones like Python, R, Statistical languages, etc. The industry is moving towards analyzing the data predicting the future (AI, ML).
As someone who's been in the AI / ML / Data Science space for > 10 years now, I would suggest studying the impact of automation and enterprise grade AI/ML platforms prior to diving in. Alteryx, Dataiku, DataRobot, etc. are going to turn a lot of product managers / business analysts / data analysts into "citizen data scientists". The market for "coding data scientists" will actually shrink and the top tier MIT/IIT types will see cutting-edge niche work in top tier companies with higher pay

If you can compete at that IQ/Skill level as a full-stack data scientist, by all means jump into custom handcrafted Python, R, Spark, Airflow, etc. Else align yourself to a large incumbent such as AWS Sagemaker, Google Vertex AI, Trifacta, Databricks, Dataiku, Alteryx, etc.
sum
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Re: Indian IT Industry

Post by sum »

Really admire the Chinese machine which marches on despite all the doomsday talk and active sanctions from all over.
Having seen the super complex stuff few of their cos are currently upto, no doubt they will achieve whatever they have set for for eventually:
China’s Share of Global Chip Sales Now Surpasses Taiwan’s, Closing in on Europe’s and Japan’s
Global chip sales from Chinese companies are on the rise, largely due to increasing U.S.-China tensions and a whole-of-nation effort to advance China’s chip sector, including government subsidies, procurement preferences, and other preferential policies.

Just five years ago, China’s semiconductor device sales were $13 billion, accounting for only 3.8% of global chip sales. In 2020, however, the Chinese semiconductor industry registered an unprecedented annual growth rate of 30.6% to reach $39.8 billion in total annual sales, according to an SIA analysis [1]. The jump in growth helped China capture 9% of the global semiconductor market in 2020, surpassing Taiwan for two consecutive years and closely following Japan and the EU, which each took 10% of market share. Sales data for 2021 are not yet available.
Very interesting article with lots of info
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Re: Indian IT Industry

Post by Cyrano »

Indian IT industry is (a)new target for fighters of "caste discrimination". From personal experience in 3 different Indian IT majors one owned by a Parsi, one by a muslim and another founded mostly by Brahmins, this is total bullshit. There can be personal biases of individuals like in every walk of life but no company implicitly or covertly applies such policies. Some may receive a certain type of education at home and develop traits that make them good diligent "employees" in cube farms (earlier it used to be mostly banks) while others are less risk averse and can dare to be entrepreneurs. The former are good fits for these IT companies, the latter don't care for such slow and steady jobs. But all IT co.s go after talent and competence else they would have never succeeded like they did.

To smear an entire hugely successful industry that has built itself on meritocracy and talent development and not on "connections and influence" is as anti-india as you can get.

The author Raksha Kumar has all the turd (NDTV, NYT) qualifications you can expect.

https://restofworld.org/2022/tech-india-caste-divides/

Read the article if you have the stomach, and see the taquiyya in operation there.

Funnily enough, on my recent trip to desh, met up with an old classmate who is now the CEO of a successful mid-size desi tech company. Somewhere in the conversation he mentioned he stopped wearing yagnopaveetam to work since reaching senior positions, lest it gets noticed under his shirt and people mis-interpret his actions as caste-biased.
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Re: Indian IT Industry

Post by Vips »

Meet Param Pravega, this supercomputer in India can perform 3.3 quadrillion operations every second.

The Indian Institute of Science (IISC) in Bengaluru has commissioned one of the most powerful supercomputers in India, which has a supercomputing capacity of 3.3 petaflops (1 petaflop equals a quadrillion or 1015 operations per second). Dubbed Param Pravega, the supercomputer is the largest in an Indian academic institution.

The facility has been designed and developed by the Centre for Development of Advanced Computing (C-DAC) and a majority of components used in the supercomputer have been manufactured and assembled indigenously, along with software developed in India.

The supercomputer has been commissioned in the institution under the National Supercomputing Mission (NSM) to power diverse research and educational pursuits from across the country. The NSM has so far established 10 supercomputer systems across India with a cumulative computing power of 17 petaflops.

"These systems have greatly helped faculty members and students carry out major R&D activities, including developing platforms for genomics and drug discovery, studying urban environmental issues, establishing flood warning and prediction systems, and optimising telecom networks," IISC said in a statement.

WHAT IS PARAM PRAVEGA?
Param Pravega is a supercomputer part of the High-Performance Computing class of systems, which is a mix of heterogeneous nodes, with Intel Xeon Cascade Lake processors for the CPU nodes and NVIDIA Tesla V100 cards on the GPU nodes.

The machine hosts an array of program development tools, utilities, and libraries for developing and executing High-Performance Computing (HPC) applications with the software stack on top of the hardware provided by C-DAC. The system also hosts high-memory CPU-only nodes that are similar in configuration to the CPU-only nodes except that these high-memory nodes have higher RAM of 768 GB per node (16 GB per core). There is a total of 156 such nodes on this system, yielding a maximum of 7488 cores for high-memory computations.

The entire system is built to operate using Linux OS based on CentOS 7.x distribution and hosts an array of program development tools, utilities, and libraries for ease of development and execution of HPC applications.

NOT THE FIRST SUPERCOMPUTER AT IISC
Param Pravega is not the first supercomputer to be installed in the IISC campus. In 2015, the Institute procured and installed SahasraT, which was at that time the fastest supercomputer in the country. The facility is being used by students and faculty to carry out research in various impactful and socially-relevant areas.

IISC said that the research conducted by SahasraT revolved around Covid-19 and other infectious diseases, such as modelling viral entry and binding, studying interactions of proteins in bacterial and viral diseases, and designing new molecules with antibacterial and antiviral properties.

"Researchers have also used the facility to simulate turbulent flows for green energy technologies, study climate change and associated impacts, analyse aircraft engines and hypersonic flight vehicles, and many other research activities. These efforts are expected to ramp up significantly with Param Pravega," IISC said in a statement.
Vips
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Re: Indian IT Industry

Post by Vips »

Indian IT revenues grow fastest in a decade to $227 billion in pandemic-hit FY22.

India’s information technology sector is set to become a USD 227 billion industry in FY’22, registering a 15.5 per cent growth, industry body Nasscom said on Tuesday.

The 15.5 per cent growth is the highest in over a decade and Nasscom’s president Debjani Ghosh termed it as a year of resurgence, after the one of resilience in the immediate aftermath of the pandemic. The industry revenues had grown by 2.3 per cent to USD 194 billion in FY21.

In its yearly strategic review for FY22, Nasscom said the industry added 4.5 lakh new jobs to take the overall direct employees to 50 lakh people. Over 44 per cent of the new hires were women, and their overall share is now 18 lakh.

Export revenues grew 17.2 per cent to USD 178 billion, while the domestic revenues grew 10 per cent to USD 49 billion, it said.

Nasscom, which has ceased to give a growth projection for the future, said that a chief executives’ survey pointed to another growth year. Over 70 per cent of those polled said they will be able to maintain growth in 2022 as well.

Ghosh said the grouping “clearly” sees an ability to reach USD 350 billion in revenues by 2026, saying the “India narrative is becoming tremendously powerful”.

The survey said employees will be the key focus areas for companies in the new year, with measures on upskilling and retention, while research and development investments will also accelerate.
Vips
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Re: Indian IT Industry

Post by Vips »

Five proposals worth $20.5-billion to set up chip, display fabrication units,

The Ministry of Electronics and Information Technology (MeitY), in a release, said it has received five applications for setting up of semiconductor fabrication and display fabrication units with total investment commitment of $20.5 billion (Rs 1.53 lakh crore).

For setting up of semiconductor fabrication units, proposals have been received from Vedanta, which has announced a joint-venture with Foxconn, IGSS Ventures, which is a Singapore-based company, and ISMC, which is led by Next Orbit Ventures Fund, the ministry said on Saturday.

“The applications have been received for setting up 28 nm (nanometer) to 65 nm semiconductor fabs with capacity of approx 120,000 wafers per month and the projected investment of $13.6 billion wherein fiscal support from the central government is being sought for nearly $5.6 billion,” it added.

For setting up of display fabrication units, two applications have been received from Vedanta and Elest, with total investment commitment of $6.7 billion and the fiscal support sought from the government could be up to $2.7 billion, the MeitY said.

Also in Explained |Explained: How the tech world is tackling the chip shortage
Last December, the Cabinet had approved a Rs 76,000-crore plan for semiconductor and display manufacturing ecosystem in the country. As a part of the plan, the Centre has lined up incentive support for companies engaged in silicon semiconductor fabs, display fabs, compound semiconductors, silicon photonics, sensors fabs, semiconductor packaging and semiconductor design.

As a part of the scheme, for setting up of silicon complementary metal oxide semiconductor, fabrication units that manufacture technology node of 28 nm or lower will get up to 50 per cent of the project cost as incentive, while for above 28 nm but up to 45 nm, the Centre will provide 40 per cent of the unit cost.

The government’s move to incentivise setting up of semiconductor fabrication units assumes significance at a time when there is a global shortage of semiconductor products. Further, for setting up of semiconductor assembly, testing, marking and packaging units, four companies — SPEL Semiconductor, HCL, Syrma Technology and Valenkani Electronics — have submitted applications; meanwhile, Ruttonsha International Rectifier submitted application under the semiconductor scheme for manufacturing of compound semiconductors.

Earlier this week, The Indian Express reported that the Centre was targeting 2024 for the formal opening of India’s first semiconductor fabrication unit. The nod for at least one major company among three that have applied, is likely to come before March 31.
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Re: Indian IT Industry

Post by Pratyush »

More than a domestic OS it's the domestic application market place along with cloud applications that are necessary for a seamless experience on both desktop and mobile devices.

The domestic OS will follow.
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Re: Indian IT Industry

Post by Cyrano »

How much taxes do foreign IT services co.s like Accenture, IBM, CapGemini etc pay in India? How much profits from India do they expatriate to their HQs ? Can anyone please throw some light on this?
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Re: Indian IT Industry

Post by isubodh »

Cyrano wrote:How much taxes do foreign IT services co.s like Accenture, IBM, CapGemini etc pay in India? How much profits from India do they expatriate to their HQs ? Can anyone please throw some light on this?
Would there be tax on export of services. Most of them are into software/services exports. My understanding is they only need to pay tax on Indian contracts, which would constitute a miniscule part of their overall business.
Most foreign vendors will has cost centers and not profit centers so only applicable cost passed to India and contract money stays in HQ which is executing the contract.
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Re: Indian IT Industry

Post by nandakumar »

isubodh wrote:
Cyrano wrote:How much taxes do foreign IT services co.s like Accenture, IBM, CapGemini etc pay in India? How much profits from India do they expatriate to their HQs ? Can anyone please throw some light on this?
Would there be tax on export of services. Most of them are into software/services exports. My understanding is they only need to pay tax on Indian contracts, which would constitute a miniscule part of their overall business.
Most foreign vendors will has cost centers and not profit centers so only applicable cost passed to India and contract money stays in HQ which is executing the contract.
They will have to pay taxes on the implied profits on the transfer of services to their parent/affiliate companies from the Indian unit through a mechanism known as 'Transfer Price'. Of course there will be some concessions for export incomes which is available to all export oriented units. This at least as far as I know. May be somebody can throw more light on it.
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Re: Indian IT Industry

Post by milindc »

Cyrano wrote:How much taxes do foreign IT services co.s like Accenture, IBM, CapGemini etc pay in India? How much profits from India do they expatriate to their HQs ? Can anyone please throw some light on this?
Most of them operate as cost centers with contracts held by HQ entities. The cost center needs to have cost of operations + profit shown. The profit is dependent on the 'transfer pricing' mechanism. Generally it will be between 15-20%. This 15-20% number is inferred based on similar entities (e.g. services entities) and their profit margins.

There is no expatriation of profits since the contracts are held outside India.
Cyrano
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Re: Indian IT Industry

Post by Cyrano »

Thank you Milind ji,
And if these India entities operate out of SEZ/STP their income is not taxed, else they pay corporate income tax?

"There is no expatriation of profits since the contracts are held outside India."
I didn't understand this part. What is the incidence of contracts with clients outside India entered into by parent company hqd outside India on profits generated by Indian entity of the group?
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Re: Indian IT Industry

Post by GShankar »

I think govt does not publish company wise data on tax collection. However, the operation is like this per my understanding.

Let's say for discussion sake there is a company called ACC.
  1. ACC usa gets a contract to implement some software project for client GEC in usa
  2. ACC usa gets into offshore contract with ACC india
  3. ACC India is the cost center - they bill for no. of people and the costing covers salaries, rent/mortgage, facility operation bills, etc. along with a margin
  4. ACC India pays tax only for this margin - most of which could still be written off as depreciation/business expenses/etc.
This is same situation with companies like INF india, WIP india, etc. They all have foreign entities executing contract, and holding money overseas.

It is a different matter when a company executes project in india like universal id, gst and stuff.
milindc
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Re: Indian IT Industry

Post by milindc »

GShankar wrote:I think govt does not publish company wise data on tax collection. However, the operation is like this per my understanding.

Let's say for discussion sake there is a company called ACC.
  1. ACC usa gets a contract to implement some software project for client GEC in usa
  2. ACC usa gets into offshore contract with ACC india
  3. ACC India is the cost center - they bill for no. of people and the costing covers salaries, rent/mortgage, facility operation bills, etc. along with a margin
  4. ACC India pays tax only for this margin - most of which could still be written off as depreciation/business expenses/etc.
This is same situation with companies like INF india, WIP india, etc. They all have foreign entities executing contract, and holding money overseas.

It is a different matter when a company executes project in india like universal id, gst and stuff.
Thanks for explaining it crisply.
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Re: Indian IT Industry

Post by Amber G. »

Meanwhile -- IITKanpur hosted the 28th edition of Asia’s largest technical and entrepreneurship festival, Techkriti’22 from 25th-27th March. Nobel laureates, scientists, technocrats, and many other dignitaries from various fields were present.

The theme was: "Transcending Origins”, the fest offered a platform for the great minds to discuss and explore various crucial aspects of business development, startup and entrepreneurial eco-system, and ever-evolving technologies.
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Re: Indian IT Industry

Post by nandakumar »

GShankar wrote:I think govt does not publish company wise data on tax collection. However, the operation is like this per my understanding.

Let's say for discussion sake there is a company called ACC.
  1. ACC usa gets a contract to implement some software project for client GEC in usa
  2. ACC usa gets into offshore contract with ACC india
  3. ACC India is the cost center - they bill for no. of people and the costing covers salaries, rent/mortgage, facility operation bills, etc. along with a margin
  4. ACC India pays tax only for this margin - most of which could still be written off as depreciation/business expenses/etc.
This is same situation with companies like INF india, WIP india, etc. They all have foreign entities executing contract, and holding money overseas.

It is a different matter when a company executes project in india like universal id, gst and stuff.
Indian IT companies pay taxes alright. Infosys for instance, paid Rs 1800 crores on a net profit of Rs 7,700 crore in the third quarter of 2021-22 alone.
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Re: Indian IT Industry

Post by Cyrano »

right; Thats what I was trying to understand, what taxes do non-india HQd IT companies pay in India? Do they pay any?
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Re: Indian IT Industry

Post by nandakumar »

Cyrano wrote:right; Thats what I was trying to understand, what taxes do non-india HQd IT companies pay in India? Do they pay any?
Accenture for example will pay taxes on the income earned and net profits after local expenses that is attributable to their India Operations. Of course it is not always possible to measure the exact value of the services that they render to their parent company. But there is a concept of 'arms length' price for the work they do in India. A vast army of Big 4 accounting firms are engaged in doing this work and getting tax assessments done.
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Re: Indian IT Industry

Post by Cyrano »

Thanks !
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Re: Indian IT Industry

Post by Vips »

The new brain drain: Indian Web3 startups flock to Dubai amid regulatory uncertainty, stiff taxes.

If there was one recurring theme that cut across multiple Web3 meetups held in Bengaluru, New Delhi and Mumbai in the last month, it was Dubai. A city that has almost become an emotion and a panacea for entrepreneurs building on the Web3 platform—the so-called next version of the Internet, which will be decentralised and run on blockchain—even as they grapple with an uncertain regulatory landscape and hefty taxes in India. Every second founder we met at these meetups has either moved to Dubai or is in transition.

This was also visible at the Web3 events held in Dubai in March, the biggest ones being Binance Week and ETHDubai, where Indians made up the majority of attendees, with pictures being flooded on Twitter and Web3 Whatsapp groups.

“75 percent of the attendees were Indians. The others included Russians and Europeans,” says Santhosh Panda, founder of Foundership, which provides coaching and capital to Web3 projects, and was one of the attendees at these events.

These meetups are no different from the ones in India. They help you meet peers, form partnerships, and have more productive discussions around your product, say some of the attendees.

But, it's not just events. India’s Web3 startups are moving to Dubai for a number of reasons. Similar to how India’s Web 2.0 entrepreneurs registered companies such as Flipkart, Ola, InMobi, in Singapore for ‘ease of business’, India’s Web3.0 entrepreneurs are now registering businesses in Dubai, Singapore, British Virgin Islands and Estonia.

The scene started changing fast after November 2021 as high taxes and stringent rules around cryptocurrencies were being anticipated in the Crypto Bill. Since then, over a hundred Indian entrepreneurs have moved to Dubai and registered businesses, according to anecdotal data from industry executives. There is no concrete research yet that pinpoints the exact numbers, but they say it is no longer a question of ‘Are you moving?’, but ‘When?’

Moneycontrol spoke to over a dozen people from the space, including investors, entrepreneurs and researchers, but to speak candidly about this sensitive issue, most of them have requested anonymity.

Why are they moving out of India?
“India is still difficult for Web2 startups, who prefer registering outside. In the case of Web3, it is just a delay, till the entrepreneurs figure out where to move to,” says a Web3 entrepreneur who shifted to Dubai in 2021 to build security for decentralised apps (dApps).

He adds that while clarity in regulations is one part, the hostility with which these startups are treated is another reason. “Bank accounts are frozen, notices are served by separate departments of the government, no support is given if you ask for clarity, the builders then start wondering if it’s really worth the hassle.”

“We then move where we are welcome, supported and given benefits to build,” he adds.

The reasons almost read like a long laundry list: no clarity in regulations, 30 percent tax on virtual digital assets (effective April 1), 1 percent TDS per transaction (from July 1), no regulations around token launch (more on this later), regular notices from government bodies and red-tapism, say Web3 entrepreneurs and investors.

These concerns were exacerbated in the last few weeks, with crypto trading volumes falling by over 50-70 percent across top exchanges and UPI payments on these exchanges halted after Coinbase announced its entry into India.

“As a Web3 entrepreneur, you don’t know what you can build,” says an investor, who has heavily invested in this space. “When you start an organisation, there is a structure, some protocols, partnerships... In the Web3 world, as an entrepreneur you don’t even know what is fine with the Government and what is not. You don’t know if you can use a certain protocol, launch coins, securities around NFTs, you just don’t know. Then you need to go somewhere where you have clarity on what is legal to build and what is not.”

To make it clear, there are currently two types of businesses evolving in this space. One registers companies outside and works from India, while the second has moved base outside.

When a startup is launched, the initial phase mostly includes product building and fundraising. That is still feasible from India even though most of the Web3 startups have global investors as well and moving out brings more scope.

But, once these startups launch their own token, which gets listed on the exchanges, it becomes paramount to move outside as the token decides the fate of the project. “You owe it, to your retail and institutional investors, that you do not come under regulatory risks,” one of the persons cited above said.

Currently, India has no rules for the launch of tokens, which are an essential part of Web3 startups. Through these tokens, these startups build utilities that increase their value.

Apart from this, tokens act as a fuel for the growth of a Web3 startup, and help in community participation and incentivisation, say the Web3 founders.

“Every entrepreneur wants to focus on their product and operations, not the regulatory part of it. While the space is new and the Government is trying to understand, it is an opportunity cost for the entrepreneurs, and to avoid that, we move to jurisdictions that have more clarity,” said a Web3 entrepreneur who moved to Dubai a few years back and has been mentoring a lot of these startups.

“These startups are building globally and there are many countries bringing in rules in favour of entrepreneurs. So, why will we not move there?”

He adds: “If you are active in the space, you will find that every six months, a new country comes up with favourable regulations and invites entrepreneurs with luring rules. A lot of places are mushrooming as epicentres for Web3.”

Take the example of this entrepreneur who has been in the space for quite a few years and registered his business in Saint Vincent and the Grenadines. “Three-four years back, Malta was a very popular destination but gradually they started bringing in more strict regulations, which became difficult for crypto startups. When we started our registration process, we checked tokenisation rules, fundraising rules, and fund management rules.”

This is not the first time crypto startups are moving out of India. In 2017-2018, when a ban around cryptocurrencies was being discussed, a string of entrepreneurs had moved out.

Crypto exchanges such as ZebPay and Vauld are two such examples. Unicorns such as CoinSwitch Kuber and CoinDCX are also registered in Singapore. Polygon (earlier known as Matic), which was founded in India, shifted its base to Dubai and has become a global name that entrepreneurs reckon as a Web3 enabler.

“When they raise millions, you need to understand this capital is not even coming to India. The country, which has the business registered, is gaining from it,” says a research and policy expert tracking this space. “They structure themselves that way and their sister subsidiaries are based in India.”

Earlier while there were no taxes, there was still a market to cater to; but now, with the staggering tax level, the momentum in the space and the market will fizzle out, he adds.

Why Dubai?
“Dubai’s Marina has become a small hub for Web3 startups,” says Kasif Raza, co-founder of Bitnning, who was also in Dubai to attend these events.

He argues that tax is not the only reason to move out, given that living costs are very high in Dubai. “It's not possible for everyone to move there. But, things are so easy there. From meeting people with one hour’s notice to experimentation in building and travelling across countries, everything is fitting in. So, these young entrepreneurs are sharing flats, staying and working together.”

Last month, the ruler of Dubai, Sheikh Mohammed Bin Rashid Al Maktoum, announced the creation of a Virtual Assets Regulatory Authority (VARA) to regulate the cryptocurrency sector. The law does not curtail any innovation at this point unlike in other countries, and this has been a major factor in drawing these startups. With stricter laws being implemented in Singapore, it is slowly losing preference, say experts.

Additionally, Dubai has no personal income tax. This means that there is zero tax on any gains, including gains on crypto currency. This also means there is no need for extensive record keeping and filing.

“Dubai has a lot of clarity and a Sandbox approach. Although you need a license to issue a token, the hassles are much less compared to India,” says the entrepreneur cited above. In a regulatory sandbox, one can test innovations under a regulator's oversight, allowing novel financial products and business models to be tested with safeguards.

Entrepreneurs say advantages such as networking opportunities, no restrictions in innovation, access to global opportunities and resources outweigh the cost of living in Dubai.

Bengaluru-based Nilesh Lalwani, who is working to build BigBuc, a Web 3.0 Shopping Platform with crypto cashback and a Buy Now Pay Later model in a decentralised way, has started to look for options in registering his startup. Some of his options include the British Virgin Islands, Dubai and Wyoming. “We will be launching our token by the third quarter this year, so we need to register before that as launching a token is not feasible in India.”

“Registering takes a maximum of 15 days and the whole process is online,” he says. The startup is also raising its seed round. Lalwani, though, will continue operations in India, after registering outside.

Talent moving out
Besides entrepreneurs, talent around blockchain, crypto and Web3 is also moving out to find better opportunities. While many are contributing to multiple international projects from India, many prefer to move out as it is easier to find international opportunities.

A major reason for this is the payment process. A number of developers and others earn in crypto. With the 30 percent tax, these developers find it difficult as they work for multiple DAOs and other projects as freelancers, so keeping records and filing them as income is an uphill task for most of them.

A number of Indian entrepreneurs also look to hire from the international pool as they have more experience in the space. “I will not find the same talent in India as I will in the US or Dubai as they have more experience in the space,” said a founder who has recently raised and is looking to expand the team.

The investor cited above also added, “Churn has been a massive problem. In Web3, the beginning itself is very distributed. Borderless work will be the future of work. And, no doubt, this will be a challenge for Indian founders. That’s when you need to inspire the workforce to work for you, and build something bigger.”

A lot of the entrepreneurs are still bullish about returning to India. “If given a choice, we would not have moved out. So, if the regulation is in favour of the industry, we will always build for India,” says an entrepreneur. Many echo that view.
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Re: Indian IT Industry

Post by Amber G. »

Umang Gupta (IITK), Who Paved Way for Indian Tech Executives Passes away
He was first of these entrepreneurs ... like Microsoft’s Bill Gates and Oracle’s Larry Ellison, who helped build an independent software industry.
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Re: Indian IT Industry

Post by Vips »

Govt sets timeline to roll out 1st indigenous commercial chipsets by 2023-24.

The government has set a timeline to commercially roll out the first indigenous chipsets by 2023-24 under the Digital India RISC -V programme launched on Wednesday, Union minister Rajeev Chandrasekhar said on Wednesday.

The Minister of State for Electronics and IT said that the Digital India RISC-V (DIR-V) programme aims to create future generations of microprocessors that will serve the need of India's strategic focus on mobility, computing and digitisation.

"One big milestone that I am very focused on is to have the first set of commercial silicon of Shakti and Vega processors available by December 2023 or early 2024.

"We want at least a few companies to adopt their product designs to DIR-V products Shakti and Vega before 2023-24 and when the silicon is ready, they start manufacturing and incorporating chips in the products," Chandrasekhar told reporters.

IIT Madras and the Centre for Development of Advance Computing (CDAC) have developed two microprocessors named Shakti (32 bit) and Vega (64 bit) respectively using Open Source Architecture under the aegis of the Microprocessor Development Programme of the Ministry of Electronics and IT.

The government has appointed IIT Madras director Professor V Kamakoti as chief architect and CDAC Trivandrum Scientist Krishnakumar Rao as programme manager of the DIR-V programme.

The DIR-V programme will consolidate and leverage the ongoing efforts in the country with an integrated multi-institutional and multi-location team, finalise the formal architecture and target performance of chipsets, support original equipment makers and design wins in India and abroad. The DIR-V initiative is part of the government's Rs 76,000 crore effort to build a semiconductor ecosystem in the country.

"We also believe over the next one-and-a-half-years, the partnership between the Shakri and Vega teams and overall DIR-V programme with platform companies like HP, VVDN and Apple and large number of companies in the electronic ecosystem will help create design wins around DIR-V family of products Shakti and Vega," Chandrasekhar said.
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Re: Indian IT Industry

Post by Vips »

Tamil Nadu bags IGSS ventures’ Rs 25,000 cr semiconductor park.

Singapore-based IGSS Ventures, one of the three applicants for central government incentives to set up semiconductor fabrication units, has chosen Tamil Nadu as its factory location.

The state government said on Friday that an “MoU was signed today between IGSS Ventures Pvt Ltd and the Tamil Nadu Guidance Bureau to set up a high-tech semiconductor park"

The state’s guidance department said it had allocated nine strategic sites, including two sites near Chennai, to house a semiconductor fab.

The fab, it said, will be producing wafers ranging from 28 nanometre (nm), 45 nm and 65 nm, and an industry ecosystem infrastructure that hosts semiconductor circuit designers, material suppliers, equipment suppliers, and outsourced semiconductor assembly and test (OSATs) players.

The state government “accords the highest priority to the development of semiconductor manufacturing in the State. The State is traditionally strong in the automobile and auto components sector and emerging in electronics which have backward linkages with fab, which makes the State an ideal location for a fab unit in India,” said Pooja Kulkarni, managing director and chief executive, guidance department, in a statement.

The Rs 25,600-crore investment would be spread over five years and would create 1,500 jobs.

IGSS is a consortium of companies with specialised capabilities in setting up a first-grade semiconductor foundry. The consortium, which will set up a semiconductor fab named Project Suria, is an applicant under the Indian Semiconductor Mission.

“The consortium believes that a differentiation strategy which offers both mainstream and emerging niche technologies with Tier 1 foundry capabilities and cost competitiveness will enable India to become a global leader in selective semiconductor technologies besides offering mainstream solutions in the technology nodes,” founder and group CEO Raj Kumar said in a statement.

Tamil Nadu has become the second state to bag a semiconductor plant.

Karnataka became the first off the block after the ISMC consortium chose a water-abundant site in Mysuru for its factory.

The Vedanta-Foxconn joint venture is still scouting for a location to set up its plant.

In December last year, the Union Cabinet approved a Rs 76,000-crore incentive plan to encourage semiconductor, display manufacturing and fabrication units in India.

The incentives have been planned for silicon semiconductor fabrication, packaging, design, display fabrication, compound semiconductor and silicon photonics manufacturing units.
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Re: Indian IT Industry

Post by Sachin »

Bengaluru police raid fake call centre; 6 held
Cops busted a Bengaluru based company called Ethical Info Co Pvt Ltd, by raiding its office on the first floor of Gayathri Tech Park in Whitefield..

The name of the fraudster company takes the cake ;).
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Re: Indian IT Industry

Post by S_Madhukar »

Sounds like Satyamev Jayate in a Khangressi office. I guess it should be easier to now identify such fake companies :rotfl:
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Re: Indian IT Industry

Post by Ambar »

Sachin wrote:Bengaluru police raid fake call centre; 6 held
Cops busted a Bengaluru based company called Ethical Info Co Pvt Ltd, by raiding its office on the first floor of Gayathri Tech Park in Whitefield..

The name of the fraudster company takes the cake ;).
For much of 2000s Nigerians had a iron grip on the reputation of being world's foremost internet scammers, that was until some enterprising kids thought of setting up industrial scale call centers in Kolkata, Gurgaon, Noida and Hyderabad to scam people in US, UK and Australia. Considering how Zubairs and neck cutting jihadis walk out on bail within days, i am not surprised that the police are less than keen to take action on these call centers but these scammers are tarnishing the reputation of the country and need to be dealt with. Youtube is full of videos of revenge seeking geeks who try to get back at these scamming call centers.
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Re: Indian IT Industry

Post by saip »

These callers use VOIP to call. Nowadays I am getting calls from Pakistan too. Where India goes Pakistan sure to follow.
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Re: Indian IT Industry

Post by Ambar »

I am not surprised such an article is published on Brietbart known for its far right politics, but I am shocked how much of racial, ethnic, cultural prejudice and stereotypes from the past century is still super-imposed on modern day issues. So your typical liberal arts loving, social justice demanding, gender confused pride parade marching American kid is not to blame for the decline in quality of US tech but it is your "regionalist, misogynist,castist" hindoo who is to blame !
The U.S. government should help make high-tech careers attractive and exciting for young Americans, not just import foreign experts, says Pat Gelsinger, the new CEO of Intel Corp., which was once the world’s leading designer and builder of computer chips.

Gelsinger is a skilled engineer who got his start at Intel by helping design the 80386 chip in 1982. On July 12, he told the Washington Post’s Ignatius that Intel’s board realized it had hired too many finance-oriented executives during the prior 15 years:

Intel lost its way. We had nontechnical [business-trained] leadership of the most important technology company in America for a decade and a half. Some of that [responsibility] …. clearly goes to the board of directors and the [hiring] choices that they made. Some of it was, “Hey, we tried certain [technical] things, we stumbled and we failed on different programs as well.” But the confluence of those board decisions, management decisions, technology stumbles, has taken [down] one of the great technology icons of America and we’re not leading anymore.

Intel’s self-inflicted decline matches the experience of other companies that elevated the C-Suite’s stock-market priorities over professional merit.

Boeing’s 737 MAX aircraft, for example, crashed after stock-price executives sidelined American professionals in favor of cheap outsourced workers, including Indian graduates.

Intel’s corporate reports, as well as federal data, show that the company has imported thousand of foreign experts for jobs sought by American professionals.

Gelsinger emphasized the future hiring of American graduates would be vital for Intel:

Are we making this an exciting domain for young talented individuals to enter into? Since we’ve announced our Ohio project [to build chip-fabrication factories in], for instance … our top universities ‑‑Arizona State, Ohio State University, Michigan, Michigan State, Purdue‑‑ … are excited to build the semiconductor manufacturing [education] curriculum to build us that long‑term workforce.

Gelsinger’s focus on training Americans was cheered by Kevin Lynn, the founder of the U.S. Tech Workers, a group that opposes the large-scale use of imported workers.

He understands [the importance of American professionals] because he knows Intel lost its way when nontechnical leadership was put into important management roles. For decades now, American elites have prioritized [economic] efficiencies and earnings per share over innovation and productivity. That’s why people like Ignatius — one of those Beltway crapweasels — see immigration as a solution to everything. What people like Gelsinger know — someone who’s a long-term veteran of the industry — it’s about investing in America’s human capital.

But congressional efforts to help Gelsinger rejuvenate Intel are being delayed by investor demands for more foreign workers.

The House and Senate have drafted legislation that grants roughly $50 billion bill to jump-start technology development and domestic production by Intel and other companies. The technology funding is the CHIPS Act.

But the House added the CHIPS Act to the America COMPETES Act, which includes many additional and diverse agendas. One of those agendas is in Section 80303, which would allow Fortune 500 companies and their subcontractors to import all of their skilled workers from China and India.

That legislation doubles down on current federal policy that rewards executives who increase corporate stock prices instead of executives who increase industry-wide productivity and innovation.

Since 1990, the federal government has allowed pr0fit-minded CEOs and investors to import multiple generations of visa workers and immigrants for skilled work. That wave of cheaper foreign workers has subordinated and sidelined many American professionals and many new graduates, according to a 2021 federal report.

Many CEOs have used the federal government’s pipeline of H-1B, OPT, L-1, and B-1/B-2 workers to replace outspoken American professionals with cheap, compliant, and subordinate foreign graduates, he said. Those foreign workers are cheap and compliant because the visa law allows the CEOs complete authority over whether they can be fired and sent back to their poor countries.

Lynn continued:

I know, from my conversation with managers in America’s Fortune 500 companies, particularly our Fortune 500 technology companies, that a reliance on foreign workers and foreign managers only leads to [workplace] tribalism and politics … When we see a preponderance of people from one country — let’s just use India as an example — career movement throughout the company becomes political and not merit-based.

It becomes tribal because we also import their caste system, their regional [rivalries], their [crony] politics, and their misogyny … They know that’s how they’re got the job, that’s how they’re going to stay in a [U.S.] job with Indian managers and get green cards.

These [workplace pressures] drive out [American] technical workers because they’re typically ill-equipped to deal with that level of office politics. They understand merit. They understand how to solve a technical problem. They can’t overcome caste and country-of-origin discrimination.

The Indian office politics are used by CEOs to suppress complaints from foreign workers about pay, hours, and workplace abuse.

The foreign office politics also minimize pushback from American professionals who oppose the C-Suite executives’ skimping on safety, security, reliability, quality, and long-term research.

The visa workers “are very subservient to higher managers,” said Mary from central New Jersey, an immigrant software expert who works alongside H-1Bs. She told Breitbart News in 2020

I would tell [the executive] professionally what the issue was, and she didn’t like that. You can’t oppose her in any way. If she tells you “It is black,” it has to be black even if it is white. [The Indian workers] will feed her what she wants to hear… When the information given to that manager is wrong, and that manager does not care, the professionalism of the field is gone.

Gelsinger has been forced through this cultural shift.

In 2009, Gelsinger was forced out of Intel after 3o years of service, which had begun with a professional interview at a community college when he was just 18. He was forced out because Intel’s board put business-school graduates in the top jobs. The New York Times reported:

[CEO Paul] Otellini and his successors prioritized Intel’s profit margins while failing to take risks to move into new markets and outflank rivals, former company insiders now acknowledge.

Intel’s stock-focused executives recruited many foreign visa workers instead of American professionals.

A 2013 report at Dice.com, a job site used by many migrant workers, reported that “when it’s seeking to fill a position, [Intel] basically doesn’t care whether it’s a U.S. citizen or H-1B worker who fills it.”

For example, from 2017 to 2019, the company asked the federal government for roughly 4,300 H-1B visa work permits. It asked for 1,000 permits in 2020, and 3,000 in 2022.

Intel also hired many foreign graduates via U.S. universities’ Practical Training programs. In 2018, for example, they hired 1,348 foreign graduates, including 368 on one-year work permits and 1,111 on three-year work permits.

Once Intel sponsored them for green cards, the foreign temporary workers were allowed to stay in the United States indefinitely. But the nominated workers usually cannot leave their employers until they can get their green cards, often decades later. From 2017 to 2022, Intel nominated roughly 6,400 foreign workers for green cards.

Most of the visa workers are inexperienced and often are less skilled than American professionals. The company sought green cards for fewer than people who arrived with O-1 “genius visas” which are given to people with a record of “Extraordinary Ability or Achievement.”

The company’s 2021 diversity report shows that “Asians” — including many Indian and Chinese visa workers — now comprise almost 40 percent of the technical staff, up five points from 35 percent in 2014. “Whites” — mostly Americans — comprise less than 42 percent of the technical staff.

This population replacement has reshaped the company and damaged the quality of research and production.

“Intel has also got a big H-1B problem, and that’s why they’re behind,” another software professional told Breitbart News.

“I was brought up that if you find an [technical problem] issue, raise it immediately,” a U.S. professional who worked at Intel told Breitbart in 2020. But the rules are very different in departments run by Indian managers, he said:

When you find a bug, don’t announce it [to your department colleagues]. Announce it to your [Indian] boss [because] they want to make sure it’s not their problem and not their bug. Don’t go through the normal process.

One of the things that got me in the biggest trouble with the Indians was when I found a bug,” he said. “It was clearly our device causing the problem,” he said. But when he revealed the problem via a department email, the Indian manager “became unglued … screamed at me in a conference room and called me the worst engineer.

“Now, most of the managers are Indian so it is very hard for an American to get hired over there … I’d go into a room of 30 people and 15 to 17 of them are from India,” he said, adding:

They all come from the same area [in India], they all know each other, they all hang out together. The other half room is all Americans … The Indians are a very, very tight group. They automatically know the caste system … The guys at the bottom, they know to suck up to the caste guys above them. They will never suck up to an American.

Indian managers can quietly trade company jobs to junior Indians in return for bribes, so they have a hidden incentive to force open jobs by firing U.S. professionals, multiple Indian visa workers have told Breitbart News.

While working for one Indian manager, “I was the senior guy and I was given the shittiest tasks,” the American said, adding:

She hated me, she would tell me I was the worst engineer she’d ever seen. She’d berate the shit out of me, and she would talk about her friend down in the Bay Area who was looking for a job. So she was gonna fire me and hire her best friend in the Bay Area. I left — it was the best thing I ever did … Within about a month, I looked back and said “What in the hell?” “Why didn’t I do this sooner?”

Intel’s management was more focused on merit when a 23-year-old Gelsinger — by then, a born-again Christian — criticized his Intel bosses in 1985, said a February 2022 report by the New York Times:

A few days later, he got a surprise call from [Intel CEO Andy] Grove. The Hungarian-born executive, then Intel’s president who later wrote the management book “Only the Paranoid Survive,” had built a culture where lower-level employees were encouraged to challenge superiors if they could back up their positions. Mr. Grove began mentoring Mr. Gelsinger, a relationship that lasted three decades.

[The next year, Grove] made him, at age 24, the leader of a 100-person team designing Intel’s [flagship] 80486 microprocessor.

Corporate outsourcing is forcing generations of Americans out of the technology sector, said one tech professional who followed her father, mother, and grandfather into the business. She told Breitbart News in 2020:

I told all my kids ‘Be good with computers but major in something else.” My youngest son is a biomechanical engineer with a Master’s. My middle son is a credentialed professional in environmental health and safety. My oldest son works in the defense industry. We can’t talk about what he does, but he probably makes more than the other two put together. My daughter married well.

The federal outsourcing policy is “basically shutting the citizens out” of the tech sector, she added.

Washington’s legislators, staffers, and journalists have ignored the deep economic damage caused by the donor-driven policy of allowing investors to import their own subordinate white-collar workforce.

For example, beltway insider Ignatius pushed Gelsinger on July 12 to endorse greater reliance on foreign graduates:

I need to ask you, frankly, whether you think the American semiconductor industry has the talent pool to be able to make this competitive leap forward or whether we need to think about changes in our immigration policies that allow more high‑quality engineers to come here from other countries. What do you think?

Gelsinger answered with 157 words on the need to train Americans:

We have to be rebuilding those areas of our colleges, universities, also community colleges as well. So, clearly, that’s a priority. We’ve committed funding to that. We’ve committed, for instance, in the Ohio [fabrication] project, $50 million of funding, which is complemented by $50 million from NSF [National Science Foundation] funding specifically on talent development.

Gelsinger’s industry peers want those foreign workers, his company is now dependent on them, and there is no easy or quick fix. So Gelsinger added 136 words of waffled, partially garbled, and skeptical comments on migration before ending the interview:

At the same time, you know, I do believe our immigration policies‑‑anybody who receives a master’s or a Ph.D. from a U.S. school can get a green card stapled to it, right? We want the best talent in the world coming here, staying here, and, you know, some of the different versions of USICA and COMPETES, you know, in the House and the Senate version specifically, you know, also include provisions around immigration.

You know, I doubt that those will pass in this current form, given some of the earlier political comments, David, you know, but this is a hot button for me. You know, I want to have the best talent on the planet coming here, staying here, being trained here. We just have to make it much easier for that to be the case.

In August 2021, Gelsinger gave a far more animated answer to the Washington Post on w he described his company’s plans to work with 18 community colleges to train the next generation of Americans:

I’m a farm boy from Pennsylvania, sort of stumbled into technology, went to community college, and really just the great American Cinderella story, so it’s something close to my personal heart as well, that, you know, many bright, capable–you know, they don’t have the opportunity to be MIT or Stanford entry … with 18 community colleges … we’re building on a success model that we already had in place to start this AI [Artificial Intelligence] program that enable us to have this workforce development with the basics of AI. We do believe that it becomes basic for everybody, but we also expect that this will [create] some of the Pat Gelsingers of the future, that this will be the starting point, and they go on to university and that they progress with their career and their employers.



We do hope that sometime soon [that] we’re on a conversation where we’re saying, okay, we’ve launched our next 50, next 100 community colleges.

Gelsinger is also deflating the investors’ profit expectations that were set by his business-degree predecessors at Intel. The New York Times reported:

Last March, Mr. Gelsinger announced Intel’s manufacturing expansion, including the foundry plan and the $20 billion Arizona project. When he detailed the long-term financial impact in October, Wall Street was stunned. Intel shed nearly $25 billion in market value in one day.

Congress is now trying to help Gelsinger rejuvenate Intel.

But Congress has been slow to pass its draft bill offering $52 billion to companies that design and build computer chips in the United States.

The bill has been delayed by congressional horse-trading — including the investor plan to let Fortune 500 companies import an unlimited number of foreign workers for the careers needed by skilled American graduates. That giveaway is opposed by Midwest GOP opposition, principally Sen. Chuck Grassley (R-IA) and Sen. Todd Young (R-IN) who want their young people and communities to get the new high-tech jobs.

The giveaway has also been opposed by President Joe Biden’s deputies, especially Commerce Secretary Gina Raimondo. She is part of Biden’s East Coast network, which often clashes with the party’s West Coast faction.

Intel is promising to build a $20 billion production facility in Ohio, but that project may be canceled if Congress cannot get the funding approved with a “skinny bill,” Gelsinger told Ignatius:

If I was building a new fab in Asia, you know‑‑and a new fab module is about a $10 billion investment per fab module, you know, enormous capital investment‑‑it’s about 30 to 40 percent cheaper to do it in Asia. Strong incentives, ecosystem, and other factors are associated with it, but by far, the biggest is the capital incentives that are in place in those Asian companies‑‑countries. And what the CHIPS Act does, it levels the playing field. It simply gives us the incentives to build those factories in the U.S.

“Where the fabs [chip factories] are for the next several decades is more important than where the oil reserves have been for the last several decades in defining geopolitics, economic, and national security,” he said, adding, “It’s that important to our future.”
https://www.breitbart.com/politics/2022 ... -vs-china/
Cyrano
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Re: Indian IT Industry

Post by Cyrano »

Hey last I checked, thats free market economics to get whatever talent a company decides it wants from wherever they can get it legally.

And last I checked, such tripe is called RACISM !
arshyam
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Re: Indian IT Industry

Post by arshyam »

Just scratch the surface a little, the racist core reveals it is alive and well. And we have many Indians piously attesting to the innate oneness of all humanity.
Vayutuvan
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Re: Indian IT Industry

Post by Vayutuvan »

https://ustechworkers.com/

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Last edited by Vayutuvan on 18 Jul 2022 05:36, edited 1 time in total.
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