September 2, 2008

Obama's thinking on outsourcing

The hot news of this time is the Obama's thinking over the nature and impact of outsourcing.On his thinking Indian technology companies said Barrack Obama has not a complete understanding of what the America is going to loss if outsourcing from other countries stops.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.

On this explanation of Obama,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.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.

1 comment:

Ishani said...

Outsourcing is here to stay due to its unique advantages. The loss of jobs might result in a reduction of the scale of operations being outsourced, but some functions are surely going to be offshored. This article at is an interesting read on the new age revolution called outsourcing.


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