Canada fast emerging as a hot new destination for Indian IT companies
TORONTO:Looming over Toronto’s downtown business district is a building bearing the legend Tata Consultancy Services. TCS does not own the building but as its largest tenant, it has the rights to have its name displayed.
That an Indian IT major is so prominently placed at the intersection of Canada’s corporate and tech sectors is symbolic of the expansion of Indian technology titans in the country.
TCS’s country head Soumen Roy said of the company’s trajectory: “It has been very significant and (a) very healthy growth, we have been able to grow significantly year-over-year.” TCS has operated in Canada for 27 years, but others with a marginal presence are expanding rapidly.
Among those observing the shift is Vikram Bhardwaj of Redileon Partners, which has 18 locations in North America.
There are several factors playing into Canada emerging as a favoured destination for these Tier I IT services companies. Companies are moving people from the US to Canada, as they keep servicing American clients. Also, the relative weakness of the Canadian dollar compared to its American counterpart has added to the attraction.
Most important is being able to hire talent easily, given the “progressive visa regime” in Canada as against the “restrictive” one in the US under Donald Trump.
“We’re seeing a massive influx of talent, who were either H1B, who were L1, who were on business visas, they’ve moved to Canada. And the Canadian government is so supportive, they give visas in exactly two week’s time,” Bhardwaj said.
IT majors are unwilling to comment on this phenomenon, given that they continue to have significant business interests to protect in the US. But the attraction of pulling in talent from the US, with a path to permanent residency in Canada, is an incentive.
“I am seeing an increase in inquiries from H1-B holders in the US. More than the last two years. Also, more and more Indian companies are opening offices in Canada to serve North American clients,” Devika Penekelapati, an immigration lawyer at a Toronto-based law firm, said in an email earlier.
TechMahindra is setting up an AI and robotics machine-learning centre in Toronto and will soon move into a larger space in the city Scarborough locality, part of the trend of companies re-examining their physical infrastructure to accommodate growth.
Meanwhile, other than operations on a project at Toronto’s Pearson Airport, Wipro is eying an expansion into Western Canada, industry insiders say.
TCS was among the early movers to Canada. But they will have plenty of company ahead, as other Indian IT majors enlarge their footprint in the country.