Indian firm sets up shop in Fargo, N.D.

Cargill is anchor customer of new Mahindra Satyam IT delivery center

By , Computerworld |  IT Management, outsourcing

The maximum prevailing wage for computer systems analysts in the Fargo area is just over $60,150. In New Jersey, near Edison, the pay for that same job is $88,155, according to government data.

Jimit Arora, a practice director at Everest Group, an outsourcing consulting and research firm, said there is increasing interest by Indian firms to expand in the U.S., in part to meet customer needs but also to address political and visa issues.

Customers of the outsourcing firms, meanwhile, are interested in onshore operations in locations that help manage the risk of having too much work done in one location, said Arora.

A number of offshore outsourcing firms have opened or announced plans for local delivery centers. "The objective is to try to make them broad-based, full delivery centers, but I think there is some ways to go before we get there," Arora said.

Mahindra Satyam gets 51% of its revenue from customers in the Americas, 24% from European customers, and the balance from other parts of the world.

The firm employs more than 33,000 worldwide, including some 3,000 in the U.S. The company's largest vertical is manufacturing at 32%, following by technology, media and entertainment at 21%.

The Indian firms tend to recruit out of colleges and then put these new hires through an extensive training program, said Arora.

Indeed, Chidambaram said that one of the appealing things about Fargo is its educational resources, and he said the company has already begun talking to local colleges about its needs and plans.

Patrick Thibodeau covers SaaS and enterprise applications, outsourcing, government IT policies, data centers and IT workforce issues for Computerworld. Follow Patrick on Twitter at @DCgov, or subscribe to Patrick's RSS feed . His e-mail address is pthibodeau@computerworld.com.

Read more about outsourcing in Computerworld's Outsourcing Topic Center.


Originally published on Computerworld |  Click here to read the original story.
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