Obama is misreading offshoring...
Indian technology companies on Friday said US presidential candidate Barack Obama was misreading the nature and impact of outsourcing.
In his acceptance speech, following his nomination as the Democratic candidate for the US presidential post, Obama said that he, unlike the Republican candidate John McCain, "will stop giving tax breaks to corporations that ship our jobs overseas, and I will start giving them to companies that create good jobs right here in America."
If Obama indeed does that in the event he becomes US president, it would adversely impact the massive flow of work that currently comes to Indian IT and business process ousourcing firms. Though Indian IT companies have been trying to geographically diversify their revenue source, almost 60% of it still comes from the US.
But technology companies here pointed out that if Obama were to do any such thing, it would only hurt America.
Nasscom president Som Mittal said the US realised long ago that outsourcing had boosted its economy. "Obama earlier said India and China will help the growth of US. US tech firms have thousands of jobs, but not enough talent at home," he said. Nasscom said that Indian software exports are unlikely to be affected by this stance of Obama as offshoring is a key economic decision for US firms.
“We are not sure whether he had meant, outsourcing in the software sector or the manufacturing sector. But I don't think the software exports will be affected or slow down. Such decisions (to outsource) are determined by economic considerations by (US) companies and they will find a way to remain competitive. Outsourcing is one of those ways," Mittal added.
T V Mohandas Pai, director of HR in Infosys Technologies, said outsourcing had made the US economy extremely competitive. Almost 50% of the revenue of top 1,000 US companies are from outside the country. "I hope Barack Obama will come out with a policy by which outsourcing will continue," he noted, further adding "Obama has only reiterated his position on outsourcing, which he has been saying all along."
Anant Koppar, an IT industry observer, also said the US does not have enough skilled workers and scope for scalability. "So outsourcing is the only option for them," he said. Meanwhile, India's software exports, led by companies like Infosys, TCS and Wipro. draw over 70% of revenue from the US market.
Facing the heat from US presidential hopefuls who blamed "shipping jobs" to China and India for rising US unemployment, the India Inc had on previous occasions launched a counter-offensive telling Americans that the industry is in fact creating new work opportunities for them.
Source: The Times Of India
In his acceptance speech, following his nomination as the Democratic candidate for the US presidential post, Obama said that he, unlike the Republican candidate John McCain, "will stop giving tax breaks to corporations that ship our jobs overseas, and I will start giving them to companies that create good jobs right here in America."
If Obama indeed does that in the event he becomes US president, it would adversely impact the massive flow of work that currently comes to Indian IT and business process ousourcing firms. Though Indian IT companies have been trying to geographically diversify their revenue source, almost 60% of it still comes from the US.
But technology companies here pointed out that if Obama were to do any such thing, it would only hurt America.
Nasscom president Som Mittal said the US realised long ago that outsourcing had boosted its economy. "Obama earlier said India and China will help the growth of US. US tech firms have thousands of jobs, but not enough talent at home," he said. Nasscom said that Indian software exports are unlikely to be affected by this stance of Obama as offshoring is a key economic decision for US firms.
“We are not sure whether he had meant, outsourcing in the software sector or the manufacturing sector. But I don't think the software exports will be affected or slow down. Such decisions (to outsource) are determined by economic considerations by (US) companies and they will find a way to remain competitive. Outsourcing is one of those ways," Mittal added.
T V Mohandas Pai, director of HR in Infosys Technologies, said outsourcing had made the US economy extremely competitive. Almost 50% of the revenue of top 1,000 US companies are from outside the country. "I hope Barack Obama will come out with a policy by which outsourcing will continue," he noted, further adding "Obama has only reiterated his position on outsourcing, which he has been saying all along."
Anant Koppar, an IT industry observer, also said the US does not have enough skilled workers and scope for scalability. "So outsourcing is the only option for them," he said. Meanwhile, India's software exports, led by companies like Infosys, TCS and Wipro. draw over 70% of revenue from the US market.
Facing the heat from US presidential hopefuls who blamed "shipping jobs" to China and India for rising US unemployment, the India Inc had on previous occasions launched a counter-offensive telling Americans that the industry is in fact creating new work opportunities for them.
Source: The Times Of India
Labels: Business
posted by Senorita at
3:43 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home