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India Inc worried over Obama's outsourcing stand

Nov 05, 2008 09:54 PM IST Business Business
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New Delhi: Barack Obama's stand on outsourcing may have given a few worry lines to India's BPO sector, but the industry is still hoping for the best, that the new American President will mean better trade ties. Obama had said, “Unlike John McCain I will stop giving tax breaks to companies who shift jobs overseas and will start giving it to companies who create good jobs in America.” Now that Obama is all set to move into the White House, is the Indian tech community a worried lot? Director and Head of Administration in Infosys, TV Mohandas Pai said, “There could be a marginal shift in the sense that he has promised that he will give tax breaks for jobs in the US which is a natural thing to do. At best you can have a marginal impact.” India gets more than 60 per cent of its outsourcing work from the world's biggest economy. In the run-up to the US presidential election, the $64-billion Indian outsourcing industry has been a little jittery over Obama's emphasis on retaining American jobs. The industry's worries were understandable in these times of a US slowdown, which has seen many Americans losing their jobs. Yes, there are uncertainties, but industry experts say India and the US can complement each other. Joint CEO of Wipro, Girish Paranjpe, said, “If US does much matter on innovative products in high tech products that's where they should try to create jobs and similarly India's much better at services, much better in certain areas of software that's would be the focus.” Industry body NASSCOM was among the first to congratulate Obama on his historic victory. NASSCOM hopes Obama will take the Indo-US ties forward. Chairman of NASSCOM Ganesh Natarajan said, “India is already seen as a good partner for America. I think he (Obama) will take this an opportunity and not a defeatish approach. We will see tremendous opportunity.” (With inputs from Mike Sangma)

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