Posts Tagged ‘Obama’

US tech industry cautiously welcomes Senate immigration bill

April 17th, 2013

Tech industry officials welcomed a bipartisan US Senate immigration bill on Tuesday, saying they hoped it would make it easier to hire highly skilled workers from abroad, while laying the groundwork to renegotiate portions they oppose.

The bipartisan “Gang of Eight” group of senators released highlights of the bill, backed by President Barack Obama, that seeks to reform the immigration system and nearly doubles the quota for H-1B visas for skilled workers. us-tech-industry-cautiously-welcomes-senate-immigration-bill

For months, the tech sector has ratcheted up pressure on the US Congress to make highly skilled immigration rules more flexible, arguing that there are not enough highly skilled American workers to fill its growing number of specialty job openings.

“This really does a lot to address our concerns about being able to hire workers when we need them,” Intel Corp policy director Peter Muller said in an interview on Tuesday. “We’re certainly going to be looking into details of this going forward … but in terms of the big picture, we’re very encouraged and pleased.”

The bill did not propose raising the number of H-1B visas as high as 300,000, as big tech companies had sought in the past, but it would allow the cap to rise to as high as 180,000 in future years, and sets aside 25,000 such visas for graduates with degrees in science, technology, engineering and math.

Companies will likely appreciate some provisions of the bill, including loosening of green card or permanent residency provisions, said Stuart Anderson, executive director of the National Foundation for American Policy, a think tank backed by the pro-entrepreneurship Kauffman Foundation and others.

“But the H-1B provisions will be considered a disaster,” he said, citing measures including expanded Department of Labor authority to investigate companies over their decisions to hire H-1B workers.

“Trying to defend yourself for something that has a large degree of subjectivity could be a problem for some companies,” Anderson said.

Most companies and tech groups, including the new group FWD.us formed by Facebook Inc’s Mark Zuckerberg to lobby on the issue, withheld comment awaiting a review of the full text of the bill.

“We’re very encouraged that they produced a bill and we see a lot of positives, but we do have some concerns we hope to see worked out,” said Dan Turrentine, vice president for government relations at TechNet, a group representing such companies as Google Inc, Cisco Systems Inc, Apple Inc

and Yahoo! Inc. Tech companies will be watching several provisions in the bill that risk becoming hindrances to prompt hiring, including new requirements to pay H-1B visa holders higher wages and to recruit American workers prior to hiring foreigners.

Both provisions seek to address the concerns of workers’ groups that oppose raising the number of H-1B visas, saying companies use the visas as a way to hire cheaper workers who lack job mobility.

“We appreciate that the Senate Gang recognizes that serious problems with the H-1B program can be resolved by more STEM green cards, delivered faster,” said Marc Apter, president of IEEE-USA, which represents US engineering, computing and technology workers, in a statement.

“In fact, the proposed increases in green cards make H-1B increases unnecessary,” Apter said.

The bill also includes provisions that would hurt so-called “H-1B-dependent” companies, like many IT outsourcing firms that employ high numbers of H-1B visa holders – programmers they temporarily hire out to corporate customers.

Those outsourcing firms could have to pay higher fees and wages than companies that depend less on H-1B workers, like Apple, Google and Facebook.

A spokesman for Tata Consulting Services, an outsourcing company, said he could not comment before seeing the full bill.

“We think it’s very reasonable to add additional requirements to the users of the H-1B visa, but those also have to be workable requirements, so that’s something we’re going to pay close attention to,” said Intel’s Muller.

“But we know it’s going to be a long process … and as a starting point, we’re really encouraged.”

Source:http://economictimes.indiatimes.com/news/politics-and-nation/us-tech-industry-cautiously-welcomes-senate-immigration-bill/articleshow/19589638.cms

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Obama re-election not best news for IT outsourcing industry: iGATE CEO

November 23rd, 2012

The re-election of US President Barack Obama is not the best news for IT outsourcing industry, according to CEO of iGATE, Phaneesh Murthy. “Not the best news for India or the IT outsourcing industry. However, we need to understand how much of the election rhetoric continues into 2013 and that will determine the full implications to us,” Murthy said.

obama_elex_us_ap“The concern over the deficit and jobs will continue (in the US) and in my mind, will force the sluggishness to remain in the economy,” he said. Obama on Tuesday won a second term in office overcoming a stiff initial challenge from his Republican challenger Mitt Romney.

Obama in this presidential elections campaign had criticised outsourcing of jobs to countries like India saying that US needs to create jobs locally. The US and Europe account for over 80 per cent of revenues of the Indian IT industry.

Source:http://ibnlive.in.com/news/obama-reelection-not-best-news-for-it-outsourcing-industry/304326-2.html

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Obama’s re-election is blessing for India

November 21st, 2012

The US President’s sharp and well-woven South Asia policy will be crucial for all stakeholders. Both India and the US will benefit from the new arrangement

As per The Wall Street Journal, “Obama’s victory in the bruising campaign marks a landmark in modern election history. No sitting president since Franklin D Roosevelt in 1940 has won re-election with a higher unemployment rate, which stands at 7.9 per cent.” Also, this election will be remembered for the excessive reliance on economic policies as its rallying point. With India-US total merchandise trade touching $57.80billion in 2011, the US is now India’s third largest trade partner and hence shares many concerns jointly.download (2)

Despite WTO’s reservations on such sound bilateral trade relations between these two countries, it’s unlikely that any significant change will take place in their cooperation in the days to come. India’s current diplomatic engagement with the US is primarily being driven by the hope that Mr Obama’s return to the White House will make his economic sense more ‘improved’. But, stepping away from his anti-outsourcing stand would not be easy for the US President, leaving Indian corporates not much to cheer about at this stage.

During the presidential debates, India attracted only fleeting interest of the candidates. Though much like the rest of the world, India too breathed a sigh of relief at Mr Obama’s re-election. By choosing to look askance at Mr Obama’s first term, where US economic policies were shaped mostly against Indian interests, India has shown a progressive and pragmatic approach towards strengthening ties and dealing with the US Government’s ‘new protectionist policies’.

Mr Obama’s presidency started off on a less friendly standing with India when he initiated a short-lived, albeit deep, engagement with China. But the past four years have shown that his views have  turned significantly in India’s favour. His distrust of military-dominated Pakistan in Afghanistan clearly marks India’s expanding future role in the South Asian region. So, it’s hardly surprising if Mr Obama is now building Bush-era like close ties with New Delhi.

In his new term, an older and wiser Mr Obama is likely to rearrange policy on South Asia and adopt a stricter line on Islamic terrorism emanating out of Afghanistan-Pakistan region. So, in strategic terms too, the US President is looking to India for decisive cooperation in Afghanistan and West Asia.

Washington knows that a decade-old operation in Afghanistan can be ended only through a more proactive role by India. India, on the other hand must not forget that the “Americans are adept at producing or reproducing well packaged formulas”, and should follow the course with proper guard for maintaining its own foreign policy fundamentals.

In the post-Cold War scenario, the US is pre-eminent but nowhere has it held supreme position. The current global strategic scenario is heavily influenced by the US, but it will be too simplified if it is called anything close to ‘unipolar dominance’. USSR’s breakup had strengthened the chances of a homogenised world. India must resist such developments as an idealistic leader of global politics. In the last six decades, India has been maintaining its independent stand on foreign policy unmindful of the brickbats and bouquets that came its way. Since 1947, the country has moved up and now it has a legacy to offer.

So, it was not by chance that Mr Obama named Gandhi as his inspiration just after winning the presidential election. With amazing diversity and capacity to act as a bridge between industrialised and developing world, India is now a prominent soft power state. It’s a fair development that US now realises India’s security concern more responsibly and accepts ‘terrorism’ as the immediate target to fight with. The world’s two great democracies, India and the US, face many common challenges and also share similar conditions to act on them.

Mr Obama’s sharper and well-woven South Asia policy will be crucial for the all stakeholders. India and the US will be benefit in the new arrangements, which might be a conservative estimation though would be closer to the reality. The responses and counter-responses in the main areas of cooperation between the two countries will decide the future course. The present is promising enough with Mr Obama’s return.

Source:http://www.dailypioneer.com/columnists/item/52863-obama%E2%80%99s-re-election-is-blessing-for-india.html

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Obama, worst US President for outsourcing: Bhagwati

November 20th, 2012

Barack Obama might have raised hopes on various economic fronts when he was elected back to head the United States, but international trade expert Jagdish Bhagwati is not as gung ho over his second term so far as outsourcing is concerned. He even termed Obama the worst US President for stifling outsourcing.

Bhagwati also did not see any conclusion of Doha round since “Obama is not interested in multi-lateral trade.”

When asked whether the United States will relax norms for H-IB visa, he today told Business Standard ,” Obama is the worst President so far as deporting the largest number of people in the US history is concerned.”home_callcenter

Professor Bhagwati is in India at the invitation of the Exim Bank to deliver the annual lecture in Mumbai on Wednesday.

The renowned economist said Obama’s Dream Act to give children who have come with their parents work permit in the US is designed to help Hispanics and not Indians.

In his election campaign, Obama had adopted hawkish postures against industries that move jobs out of America.

Indian industry expressed hope that the US President would take a less aggressive stance on the industry in  his second stint.

Bhagwati said that it would be virtually impossible to revive the Doha round of trade talks given the opposition to the forum by the United States.

“The Doha round is in intensive care and given the fact that President Obama has no interest in multi-lateral trade, it can be said to be virtually dead”, said Bhagwati, professor of economics and law, Columbia University.

He said the Indian government could have made some attempts to revive trade talks at Doha, but it could have impacted the strategic relationship between India and the United States. This could have led to Indian side not taking any pro-active steps to push for conclusive negotiations.

“The Doha agreement could have been a great advantage to developing nations. But Barack Obama has given no indication of any interest in framing multi-lateral trade agreements. The United States would rather frame trade agreements on a bilateral level where they can have more say in outlining the terms of a partnership. This is a real danger because it would in turn undermine rules and dispute settlements at the WTO”, Bhagwati added. The 78-year old said that emerging nations should now step into the ‘damage-control’ mode and explore ways to progress, post-Doha.

The contention comes at a time when trade ministers from 155 countries are set to meet in Bali, Indonesia in December 2013 to make a last attempt to save the Doha round of talks which have been languishing since 2001.

Delivering a lecture to mark 30 years of Exim Bank, Padma Desai, also a professor in Columbia University, said the possibility of the European Monetary Union collapsing is unlikely because of the fear of cascading effect on the entire continent.

On her lecture on “the Global Financial Crisis: Causes and Consequences”, she said the Obama government will tackle the fiscal cliff issue in the United States.

Source:http://business-standard.com/india/news/obama-worst-us-president-for-outsourcing-bhagwati/196429/on

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Obama as US President: What’s good & bad for India

November 16th, 2012

Is the re-election of US President Barack Obama good for IT industry? Yes and No, if you ask the IT leaders in India.

“Not the best news for India or the IT outsourcing industry. However, we need to understand how much of the election rhetoric continues into 2013 and that will determine the full implications to us,” Phaneesh Murthy, CEO of iGate, was quoted as saying in the media.

1

His concern is that the deficit and jobs will continue (in the US) and that would result in continuation of economic sluggishness.

However, Nasscom president Som Mittal welcomed Obama’s re-election. India and the United States have to collaborate in many ways, including cybersecurity. So, they were hoping for comprehensive changes in the immigration policies of the US, he said.

“US does have a huge impact on the world’s economy. When US does well, the rest of the world, too, does well. When growth gets back, jobs will be back. We work for the US economy in many ways. We have solutions to many of their problems. We hope the (US) Congress would play a more constructive role this time.”

He also said that they were expecting a service visa, like an extended work permit, from the US, as how the United Kingdom, Germany, Switzerland, China, Japan and India have.

The reaction of N Chandrasekaran, CEO & MD TCS was more balanced. “Now the focus will be on driving economic growth, which will lead to increased prosperity and greater job creation in the US, as well as act as a catalyst for growth across the world. Technology will play a strong role in driving the next phase of growth and Indian IT companies will have opportunity to play a significant role to partner with US companies to achieve this. This will lead to further job creation in the US and other parts of the world.”

Source:http://www.ciol.com/ciol/news/121554/obama-us-president-whats-bad-india/page/2

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IT firms hope Obama 2.0 will ring in more biz certainty…

November 9th, 2012

Barack Obama’s re-election as the US President evoked mixed reactions from the Indian information technology industry.

While many industry players welcomed his second win, some said it is not good news for the Indian IT outsourcing companies.

SIGNIFICANT OPPORTUNITY

“There is going to be a lot of focus on economic growth, job creation and continuity of drive. Lot of economic activities in terms of financial performance and better growth rates will happen,” N. Chandrasekaran, Chief Executive Officer and Managing Director, Tata Consultancy Services, said. This will translate into significant opportunity for the technology sector as more jobs will be created both in the US and in India, he said. Indian IT companies will have opportunity to play a significant role and partner with the US companies, he said. TCS alone has created 2,500 jobs in the US in the recent past.BL08_OBAMA_COL_eps_1261711f

“There is nothing negative for the Indian IT companies as we are creating local jobs there. Lot of reforms are happening around energy, healthcare and utilities, which will benefit us,” Ganesh Natarajan, Vice-Chairman and Chief Executive Officer, Zensar Technologies, said.

Industry body Nasscom said there would be an opportunity of working with the President and his Administration on mutually beneficial policies that will boost the economies in both nations.

It will enhance bilateral national security matters between India and the US.

“With the global economy still under stress, it is more important than ever that India and the US find ways to partner together to spur innovation, foster economic growth, develop an educated and skilled workforce,” it said in a statement.

BUSINESS AS USUAL

Infosys, which has maximum number of issues with the US regarding visas, also hoped for better future.

“With the elections behind us, the uncertainty is over. I am hopeful that they will have more pragmatic approaches to the problems being faced in the US,” Kris Gopalkrishnan, Executive Co-Chairman Infosys, said. However, he also said that there would not be any immediate impact to IT industry and it will be business as usual as of now.

“We, at HCL Technologies, are committed to supporting American corporations and American people on this journey of renewed growth,” Vineet Nayar, Vice-Chairman and Chief Executive Officer, HCL Technologies, said.

While, there have been many debates and reports around outsourcing over the past few months, things will be clearer since elections are over.

“The reality is that outsourcing in areas like IT, legal support and other professional services, helps the US retain or increase jobs. Neither Democrats nor Republicans are likely to compromise the competitiveness of American companies in the global market,” said Umair Muhajir, Vice-President and Global Head, Litigation Solutions, Pangea3, a legal process outsourcing firm.

‘NOT GOOD NEWS’

But, Phaneesh Murthy, President and Chief Executive Officer iGate, said Obama’s win is not the ‘best news for India or the IT outsourcing industry’.

The concern over the deficit and jobs will continue and will force the sluggishness to remain in the economy, he said.

“However, we need to understand how much of the election rhetoric continues into 2013 and that will determine the full implications to us,” he added.

According to E. Balaji, Managing Director and Chief Executive Officer, Randstad India (HR service company), as the US is a highly capitalist market, it would look for cheaper and cost-effective countries for outsourcing. India could be one, but they may look at other alternative countries such as the Philippines, Malaysia, Poland and Romania.

“But, if India has conducive solutions, businesses will continue to come here. India also has to look at opportunities as there is required quota of 1.35 lakh people every year, which should be utilised,” he said.

Therefore, Indian IT firms have good future in the US market, he added.

Source:http://www.thehindubusinessline.com/industry-and-economy/info-tech/it-firms-hope-obama-20-will-ring-in-more-biz-certainty/article4074660.ece

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Obama win: Outsourcing still a concern, says India Inc

November 8th, 2012

It is on expected lines but there was some heat reported in the last few days. I think it will be good for India. There will be continuity… I have heard this (concerns over outsourcing) in the previous election. We saw Mr Clinton go very heavy on outsourcing and we did not see anyone of these impacting our outsourcing business or relationships.

Sunil Bharti Mittal,

Chairman, Bharti Group

This is a good development for India. Between two large economies there will be issues and concerns. Outsourcing is also a concern and I hope it will be addressed soon.

Adi Godrej, Chairman, Godrej Group and president, CII

… with the election, the rhetoric is also over and we are back to business. It is good for America and Indian IT sector

Rajendra S Pawar, Chairman, NIIT

I think there will be greater implications as he (Obama) focusses on issues like unemployment. I just hope he remains true to free trade and all the other things that he talks about so well.

Pramod Bhasin, former CEO of Genpact

Now the focus will be on driving economic growth, which will lead to increased prosperity and greater job creation in the US, as well as act as a catalyst for growth across the world… Indian IT companies will have opportunity to play a significant role to partner with US companies to achieve this

N Chandrasekaran, CEO & MD, TCS

Obama deserved another term. He has waded through four years of immense economic challenges, created jobs, pulled out troops, didn’t wage war, won a Nobel prize and improved America’s image of being a bit of a bully. He will be pressured going forward…

Harsh Goenka, Chairman, RPG Enterprises

Markets cheer Us election result

Barack Obama’s re-election as the US President brought cheer to Indian stock market pushing the BSE benchmark Sensex up 85 points to close on Wednesday at a one-month high of 18,902.41 on hopes of revival of global economy. With this, the 30-share index extended its winning run to the sixth straight day after gaining 386 points in last five trading sessions.

The Nse 50-share Nifty also firmed up by 35.70 points or 0.62 per cent to 5,760.10. The market breadth was positive as 1,672 shares finished higher while 1,205 scrips ended lower.

Information technology stocks, including Infosys and TCS, closed with gains. The Indian software companies get over 50 per cent revenue from the US and European markets.

Also, on hopes of the biggest healthcare reforms in the US since the 1960s following Barack Obama’s win, the BSE Healthcare index gained 1 per cent to its 52-week high of 7,898.31. Eventually, the index closed the day 7,859.57, up 42.19 points or 0.5% from its close on Tuesday.

Source:http://www.indianexpress.com/news/obama-win-outsourcing-still-a-concern-says-india-inc/1028387/0

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