The Virginian-Pilot
©
NORFOLK
Five small Indian technology companies are coming to Virginia and likely will create 75 new jobs and contribute tens of millions of dollars to the state economy during the next three years, Gov. Timothy M. Kaine announced Thursday.
Kaine made the announcement during his keynote address at the 60th annual Virginia Conference on World Trade at the Norfolk Marriott Waterside. He spoke on the importance of promoting trade between Virginia and India, in line with the conference's Indian focus.
The five companies, locating in Northern Virginia, are working in partnership with George Mason University's Mason Enterprise Center, which helps foreign companies establish a presence in the United States through its International Business Accelerator, said Marshall Ferrin, the program's director.
India's Electronics and Computer Software Export Promotion Council hand-picked the companies. They are software services company CCS Technologies Ltd., call center provider Vishnu Solutions, services company Symbiosys Technologies, travel technology company Bird Group and Web and software developer 01 Synergy.
They are committed to working in the United States for at least three years, Kaine said.
The move helps counter ideas that trade with India means job destruction for Americans, he said, and shows the benefits of globalization.
"The more of these we have, the more I think Virginians say, 'Wow, you know, trade is two-way and maybe we can be net winners instead of net losers,' " he said. "And that has to be the attitude because whether we like it or not that's the way the world is, so we might as well embrace it, leverage the value of these unique assets like the port and Dulles and be known as global players."
The Virginia Economic Development Partnership and Virginia Port Authority hosted the conference, which drew more than 300 people. It focused on helping Virginia businesses improve their trade with India and showcasing the state's appeal for Indian business.
Virginia's trade with India has been steadily growing, with exports tripling during the past five years to $113 million in 2007, according to The Journal of Commerce.
And with the Indian economy growing by an average of 9 percent each year, there's a huge opportunity for investment, said John Luke, chairman and chief executive officer of global packaging company MeadWestvaco Corp.
"We continue to believe it will be an essential part of our global growth ambitions," he said during his lunch address. But success in India requires an in-depth understanding of consumer behavior there, the government agenda, infrastructure challenges and complex regional nuances.
"You have to work backward from the consumer to the company, not the other way around," Luke said.
The ongoing global financial crisis was an underlying theme of the conference, with speakers promoting ongoing investment in emerging markets like Russia, China and India despite current financial difficulties.
"These are challenging economic times in Virginia, in our nation and worldwide," Kaine said. "We don't know how long some of these challenges with the meltdown of the financial institutions will last. One of the strategies we have for success moving forward is to invest in the global economy. We need to be aggressive international players."
Kaine and Luke warned against protectionist policies in light of the United States' economic crisis.
"Unfortunately, today there is a mounting protectionist sentiment in our country," Luke said. "Trouble at home cannot be an excuse to promote protectionism or to retreat from growth opportunities abroad."
Within the next month, Kaine said another major business announcement is planned, but he declined to provide details.
Job creation and trade partnerships in both the United States and India are keys to success for both countries, Ronen Sen, India's U.S. ambassador, said at the conference.
"The biggest change you would find in India is not the GDP growth, it's not the increasing sense of prosperity, it's hope," he said. "If India succeeds, and the United States has succeeded, it offers great hope not just for our two countries but for the world because the ideals that we represent."
Kathy Adams, (757) 446-2583, kathy.adams@pilotonline.com
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Ethan - I do not call center jobs moving off shore either. And,
consumers hate it even more. As it turns out, two of these Indian companies have established help desk call centers in the U.S., not in India. They believe in service to the communities and countries in which they operate. Country economies are being replaced by the global economy. It is the function of our federal government to regulate trade among nations. They need to step up to the plate and lower the corporate tax rate in the US. The US has the 2nd highest corporate tax rate in the world. That and other government mandates are forcing American multi-national companies to go elsewhere. Protectionism is not the answer. There are millions more consumers world-wide than what we have in the US and there is a great need for our products. We need to export final goods but more importantly, we need to be leaders in world trade and in the development of policy.
cnicholas
cnicholas - yea, I don't know what went on at the conference. I got to see the Symmantec facility in Newport News right after all of the equipment was shipped to India though. That was probably 200 high paying jobs, and as a result customer service to enterprise customers might suffer. But we're getting 75 new jobs! On top of this, our brilliant US Gov't is now trusting quite a bit of software written in foreign countries (but marketed by American companies) that runs on it's computers that handle both classified and unclassified information. As a nation of super debt, I guess we will sell all of our real estate and companies to the foreign countries that financed our consumerism for the past few years. Doesn't make for a promising outlook in the future for the locals, though.
It's a scam!
They will set up shop and hire a few token Americans. Then they will secure work visas for thier Indian replacements. Ever heard of the "Outsourcing Visa"? Google it.
Please be careful posting on topics you don't know anything
about. Ladies and Gentlemen, if you were not at the conference and you are writing these comments based upon this one article or perhaps on prior misconceptions, please give it a rest. I was there; so I will comment.
Virginia is rated the number 1 state for business in the US. Besides the announcements made yesterday what you may not realize is that all areas of the Commonwealth are being investigated by multi-national companies due to our location, our workforce, our abundant real estate and our diversity. Virginia is an ideal location for multi-national companies and most people get that...especially the executives and location consultants who work with our Economic Development teams.
These companies by and large hire AMERICANS, the jobs are located in AMERICA, taxes are paid to the U.S. and Commonwealth. The jobs they create spin off many new jobs in many diverse sectors of our economy.
These companies understand that we live in a GLOBAL market place. We must compete globally and that is what VIRGINIA is doing so well thanks to the economic development teams in our regions and at the state level.
Rolls Royce is building a huge new plant out in south cent
Times must be rough
Times must be rough if a major job announcement is 75 jobs in the state of Virginia over the next 3 years.
I hope INS reads this article...
because six months after they arrive here they will have only work visa employees and no Americans. The above poster is right; they are just giving themselves a U.S. presence so they don't have to fly over here as frequently.
Jobs
Maybe they'll hire Americans to man their trouble call sites, you know somebody who actually speaks English you can understand?
IT Jobs from India to VA
is the big lie. These companies are coming here to scout for technical opportunities that allow them to pull even more contracts to Bangalore and other parts of India. Go out on the websites of any of these companies and count the number of jobs offered in the USofA. If I were one-handed, I would still have a finger left over.