Donald Trump’s Localisation Plan Main Hurdle: US Firms Hold Back Tech Hiring In India

There is a prevalent sentiment now in the US that high-end capabilities in the technology space should not go out given the bitter experience of the US with regard to China in the manufacturing sector. The country is not keen, under Trump administration, to move sophisticated technology jobs to India or any other country anymore - Aditya Narayan Mishra, CEO, CIEL HR Services, tells Bizz Buzz

Bengaluru: Trump administration policies on local hiring has created a confusing situation for many US-headquartered enterprises with regard to adding headcount in India.

According to experts in the recruitment space, many US-based multinationals are playing a wait and watch game in terms of hiring technology talent in India given the fear of a backlash from the Trump administration.

“So far, this (impact of Trump’s policies on tech hiring in India) has been a mixed bag. There are companies, which want to hire and have a talent pipeline ready. But offers are yet to be released. Secondly, some companies are in a wait and watch mode. These companies want to move jobs from the US to India like the GCCs (Global Capability Centres) for example. Here some companies are not keen to do that because of Trump’s policies,” Aditya Narayan Mishra, CEO of CIEL HR Services told the Bizz Buzz.

Under Trump, the US is keen that the native companies hire locally than outsourcing jobs to offshore centres like India, Vietnam, Mexico and others. Given the poll promise of the current US President, the administration wants to promote local hiring for job creation in the US.

Moreover, after the supply chain disruption during the Covid period, the US doesn’t want to outsource key skills in the technology sector, outside the country. “There is a prevalent sentiment now in the US that high-end capabilities in the technology space should not go out given the bitter experience of the US with regard to China in the manufacturing sector. The country is not keen, under Trump administration, to move sophisticated technology jobs to India or any other country anymore,” Mishra said.

Therefore, hiring for lower-value adding jobs in the technology sector will continue in India owing to the cost advantage and talent pool availability. Post globalisation, the US has lost its competitive edge in many sectors as native companies move out key manufacturing facilities to other countries. Subsequently, the country has lost much of the talent pool due to lack of such facilities.

Under Donald Trump, the current administration is focussed on promoting domestic trade and job creation. Reciprocal tariffs and other related measures are aimed at bridging the trade gap of the US with other countries and promote local businesses.

Meanwhile, given the uncertainty around global growth, many multi-nationals and Indian companies have skipped the college campuses. “Many tier-II and some tier-I educational institutions have not been able to give placement to their students due to tepid growth prospects of global economy,” said a source.