The Hindu : Business : Obama win will open up new vistas for IT, BPO

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Friday, Nov 07, 2008
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Obama win will open up new vistas for IT, BPO

Special Correspondent

Current lull in Indian outsourcing only temporary
Offshoring, outsourcing are business decisions

NEW DELHI: The Indian information technology and business process outsourcing (BPO) industry believes the election of Barak Obama as the U.S. President would open up new opportunities for them and that the economic and business cooperation between two nations would only grow.

IT-BPO industry leaders have allayed fears regarding Mr. Obama’s “election rhetoric” on outsourcing and underlined that in the globalised and inter-connected world, the U.S., which is going through economic downturn, would only need help and cooperation of others, particularly developing nations like India and China, to fight this slowdown.

Indian IT and BPO industry earns revenues of over $40 billion from its software and services exports, of which over 60 per cent comes from the U.S. So, when Mr. Obama spoke about stopping tax breaks to the U.S. companies shipping jobs away and giving incentives to those investing in the country during his election campaign, many eyebrows were raised in India.

“I don’t see any negative impact of this victory on Indian IT-BPO industry. What I see is more opportunities for us as Mr. Obama’s priority is to bring the US economy back on track. Indian IT and BPO industry will play a crucial role in it,” said National Association of Software and Service Companies (Nasscom) President Som Mittal.

“It is a globalised world. It is not just that Indian companies are operating in the U.S. or are getting outsourced jobs. Many leading Indian companies and professionals have helped transform big U.S. companies. Many studies have showed and people in U,S, also know that outsourcing has rather helped protect their jobs then lose them by improving their competitiveness and productivity,” he explained.

H1B visa

“We also support expanding the H1B visa programme so that skilled workers can help companies lead the way on innovation and contribute additional jobs and economic growth in the U.S. President-elect Obama knows that the U.S. is short of skilled manpower; and we are a part of this solution,” Mr. Mittal added.

Terming Mr. Obama’s statement on outsourcing as “election rhetoric”, Business Process Industries Association of India (BPIAI) President Samir Chopra said: “When you are outside the government, you have a perception; but when you get into the system, you face the reality. Mr. Obama will also realise that outsourcing is profitable for their economy.”

Terming the “recession” in the Indian outsourcing industry as a “short breakdown”, Mr. Chopra said the current lull would only be momentary.

Similarly, International Data Corporation (India) Executive Director Kapil Dev Singh said business issues were governed by policies. “America is known to advocate free market principles and individual choice. Many U.S. corporations tap new resource or demand new markets.

Off-shoring and outsourcing are a business decision for them,” he said, hoping that policies of Mr. Obama’s administration would not have any effect on the prospects of individual business choice.

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