The Hindu : Tamil Nadu / Chennai News : ‘Outsourcing created more jobs in U.S.’

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Friday, Feb 27, 2009
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Tamil Nadu

Tamil Nadu - Chennai

‘Outsourcing created more jobs in U.S.’

Sruthi Krishnan

CHENNAI: Despite U.S. President Barack Obama’s statement that American companies outsourcing jobs would not be given tax breaks, representatives of the Indian information technology industry are confident that the U.S. would not take any measure that could affect its ability to compete.

“We need to wait for more details to understand President Obama’s statement,” said Infosys, responding to Mr. Obama’s announcement during his first address to Congress. “Outsourcing has enhanced the competitiveness of U.S. corporations and has created more jobs in the U.S. economy. The U.S. is a very open economy and a strong proponent of free trade globally,” Infosys said.

NASSCOM, the trade body of the Indian IT industry, said more than 50 per cent of the revenues of leading U.S. companies came from outside the U.S. market. “This business model has enabled U.S. companies to gain an edge in technology and innovation and access the best resources globally.”

Noting that Mr. Obama had supported the need to avoid protectionism, it said: “This is not the time for protectionism but for global collaboration, if the world is to come out of the downturn quickly. We hope that all other countries would support this and continue to be proponents of free trade. While supporting international trade, countries have been promoting local investment through tax incentives for job creation.”

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