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Donald Trump does not want fang to rent in India, but the supply gap means that companies cannot listen to them

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Donald Trump does not want fang to rent in India, but the supply gap means that companies cannot listen to them

US President Donald Trump has a new demand from technical companies: do not rent in India; Instead, rent Americans. But those who take their words cannot be found. The US does not produce enough engineers, and Indian technical talent is both efficient and cost -effective.

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Donald Trump does not want fang to rent in India, but the supply gap means that companies cannot listen to them
(AP photo)

In short

  • US President Donald Trump wants technical companies not to rent in India
  • They cannot be suggested by companies like Google, Microsoft and Amazon
  • Indian technical talent is both efficient and cost effective

A day earlier, US President Donald Trump urged technical giants such as Google and Microsoft to hiring in India and “focus on Americans”. His comments immediately went viral, with people posing a clip to slam technology for the “Globalist Mentality”. His comments were also clear and clear: he said that technical companies such as Google, Microsoft, Amazon, Meta and others should keep Americans first and have their own offices in the US rather than establish them in India.

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Trump said, “Many of our largest technical companies have blessed American independence while building their factories in China, hiring workers in India and earning profits in Ireland, you know that,” said, “said. “Under President Trump, those days are over.”

Then the question is: Will Google, Microsoft and others follow the calls made by Trump and pay attention? Will they stop hiring tech engineers and software developers in India? The more important thing is whether they want to establish new offices in America instead of India? Most of these questions are answered – not likely.

This is because the reality of supply, demand and cost of technical talent tells a different story. The US simply does not produce enough engineers to meet the growing needs in its technical field, and hiring in India provides huge financial benefits. Therefore, despite political pressure, there is a possibility of recruitment of technology in India by Fong and others.

America does not have enough technical engineers

Let’s look at the numbers. Each year, according to the integrated postcondary education data system, the US produces about 150,000 engineering graduates at a graduate level. In addition, around 50,000 students complete their master in engineering, and receive around 12,000 doctors. These sounds are in large numbers, but they are not enough when you consider how many people need the technical industry. Just to give you a scale signal: Google employs about 1,80,000 employees.

According to the forecasts of the US Bureau of Labor Statistics, STEM is expected to increase by about 11 percent every year through-2032 in areas such as jobs-specific software development. In comparison, non-STEM jobs are expected to increase just 2 percent in a year. This means that the demand of engineers is increasing rapidly that the US can train and supply them.

What it makes is a talent difference. There are not enough American engineers to meet the demand of growing technical companies, especially at this time, as they join the AI race along with each other as well as the rest of the world. And it forces gap companies to look outside the country, with India one of the top options.

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Compared to the US, the number of Indian engineering graduates is much higher. According to estimates from the Ministry of Education of India and AICTE, India produces more than 1.5 million engineering graduates every year. While they are not in all techniques and software, and not all of them have skills that top technical companies see in their employees, the sheer number of graduates themselves are an attractive offer to hire managers working with global veterans themselves. At the same time, there is also a perception that fresh Indian IT engineers, especially from top institutions such as IITs, are eager and are ready to grind in thus that American graduates are not.

Then the cost factor

With mismatch in demand and supply, another reason is the cost that technical giants like their offices in India, this is the cost. Renting Indians in India is more cost effective for technical giants. For example, take salary. The average annual salary of a software developer in the US is usually around $ 120,000 – $ 140,000 (about Rs 1 – Rs 1.2 crore). Cities such as San Francisco or Seattle, the salary is even higher, often $ 150,000 – $ 200,000 (about Rs 1.3 – Rs 1.73 crore) annually.

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Meanwhile, an Indian software developer earns less. The average salary of Indian software developers working in the US is approximately $ 75,000 (about 65 lakh rupees) per year, and in many cases, they are even less.

In India, the salary for the same role and the same work is even lower. In some cases, they may be reduced as 20 lakh rupees (about $ 25,000), or may also be low for the positions that are open only for trainees and intern.

Low cost is one of the biggest reasons that companies continue to hire from India. For similar skills and productivity, firms can hire more people, manage large projects, or simply reduce expenses.

Tech companies are likely to ignore Trump

The US President is the most powerful person in the world. But even it cannot force any private tech company to hire or appoint people in any other country. The US government may certainly force companies with some specific laws, but the Trump administration is unlikely to do so as it will hits American tech companies adversely.

This means that Trump can only suggest, and it is fine that he did on 24 July. Logic and ground realities means that technical companies like Google and Meta will simply ignore their comments. Best of all, they can hire some more people in America, as a remedy for reverence. But in general, Trump’s comments are unlikely to change anything in relation to fong hiring policies in India. There are currently not just enough engineers in the US, and certainly not cheap to rent, to fill all the vacancies that have technical companies.

– Ends

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