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No major impact of `backlash' on IT industry — Karnik

By Our Special Correspondent

HYDERABAD, JAN. 12. The National Association of Software and Services Companies (Nasscom) President, Kiran Karnik, feels that there will be "no concrete impact of backlash (outsourcing)" on the Indian IT industry, adding that, "We are not worried but are concerned about it, because of it being an election year in the U.S".

Addressing a press conference on the sidelines of Nasscom's iTech 2004 being held here on Monday, he pointed out that 85-90 per cent of job losses were in fact in the manufacturing sector in the U.S., rather than information technology.

"This (issue) is not an Indo-U.S. issue. It is only a political issue. The outsourcing model has been there for 50 years, and it is for U.S. companies which espoused this (outsourcing) model to take it up," he observed.

"We see it as not effecting business as such. As results improve in the U.S. and jobs begin to pick up, I expect the issue to fade away," he said. Describing outsourcing as a `win-win' model, he pointed to the Mckinsey U.S. report, which showed that for every dollar outsourced, $1.47 went back to that country.

Mr. Karnik was confident that the IT industry would meet its exports target of $12 billion for March 2004 against $9.5 billion in March 2003.

The figures include projection for BPO services of about $3.6 billion ($2.5 billion in March 2003).

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