North America Is Attracting Midcap Indian IT Firms: The Reasons Behind

Sundar Pichai - May 16, 2019

Hurdles in talent acquisition, coupled with the U.S stricter immigration policy are encouraging Indian firms in the IT sector to move to Canada and Mexico.

While Singapore has been a hotbed for fin-tech companies due to its open door policy, Mexico and Canada are becoming attractive destinations for lots of Indian firms in the IT sector, including small and medium ones. According to Economic Times, Zensar Technologies is planning to open a new delivery center in Canada at the end of this year, adding about 100 employees at this location.

Client Requirements

Zensar Technologies is an IT company based in Pune, providing digital solutions and technology services for global enterprises. Although the company already had five centers in the US, it still plans to open a new one in Canada and double the number of people at Mexico’s center in 2019.

CEO Sandeep Kishore said that they would hire more people in North America based on client requirements. In 2018, revenue from the US market accounted for 70% of the company’s total revenue. Having a local presence is crucial for Zensar’s future growth. In the meantime, increasing the cost of local talent, coupled with strict immigration policy makes it difficult for the company to attract new members.

Talent Supply Situation

Based in Mumbai, Hexaware Technologies has provided business process outsourcing and IT services since 1990. Hurdles in talent acquisition in the US are troubling the company’s growth, setting 2018’s low growth as an example. Hexaware heads to expand their presence in the Mexico market, tackling the problem.

CEO R Srikrishna announced to increase the workforce in Mexico to 600, despite already having a center there. The plan consists of supplying a talent base for US needs.

Immigration policy

While rejection rates for a visa from India are increasing, the favorable immigration policy of Canada becomes their advantage to attract Indian software professionals. NIIT Technologies is one of the instances. They started the presence in Canada after the acquisition of Incessant Technologies three years ago. This is considered their strategy to look for clients in North East America. Meanwhile, Cybage also set up a center in Canada last year because of the country’s reasonable visa policy.