In India's leading cities, American companies are rapidly expanding their presence through the establishment of larger offshore campuses, which employ high-skilled Indian professionals for essential global business functions.
The concentration of such companies is particularly evident in Bengaluru, where Apul Nahata of RapidAI noted the proximity of major tech firms like Google, Qualcomm, Nvidia, Visa, Samsung, and Amazon. Major companies, such as JPMorgan Chase, have established significant office spaces in Bengaluru, employing approximately 55,000 workers across the city and four others, while retailers like Target and Lowe’s have also set up sizable centers in the area.
The shifting U.S.-India trade dynamics under President Trump, who has expressed concern over a $46 billion trade deficit, do not appear to hinder American companies’ pursuit of skilled labor in India. Despite higher tariffs and immigration policies proposed by the U.S. government, the ongoing demand for skilled workers continues to drive the relationship between American companies and India's labor force.
Over the past two decades, initial fears regarding job losses due to outsourcing have transformed as American companies increasingly rely on Indian talent. As of 2024, around 1,800 offshore offices owned by foreign multinational companies, predominantly American, operate in India, employing approximately 1.9 million people. This number is projected to grow significantly by 2030.
Offshore centers in India generated about $65 billion in revenue last year and are anticipated to exceed $100 billion by 2030. These centers are vital to India's commercial real estate sector, with 50 new centers launched last year, and expectations of 100 more by 2025. This growth is positive for India, which requires 10 million new jobs annually to keep unemployment rates stable.
The model of American companies establishing offices in India has evolved since the 1990s. While previously focused on low-wage jobs, offshore centers now operate as integral branches of their U.S. headquarters. Despite rising wages in India, they remain significantly lower than comparable salaries in the U.S.
The Covid-19 pandemic has further accelerated the relocation of American companies to India, as remote work has enabled teams to function seamlessly across the globe. New entrants like Pure Storage have adopted a similar operational model as their U.S. counterparts, establishing offices in Bengaluru with a design that reflects their Silicon Valley headquarters.
In addition to tech start-ups, established companies like Pitney Bowes, which employs a significant portion of its shipping-technology workforce in India, exemplify the trend of offshoring. Many engineers and professionals in India now have global roles within these organizations, reflecting a growing acceptance of remote and international work arrangements.
American companies face challenges in recruiting qualified workers domestically, with many engineering positions remaining unfilled. As a result, India, graduating 1.2 million engineers annually, continues to be a key destination for skilled labor. Experts predict that the trend of globalizing workforces, particularly in India, will persist due to the lack of educational resources needed to adequately staff similar operations in the U.S.