US President Barack Obama’s visit to India in November puts the spotlight on its $60-billion IT sector. Concern has been growing in the US that Indian firms are taking away technology jobs from Americans.
India argues it is a creator of jobs in the United States and should not be blamed for high unemployment.
The President of India’s National Association of Software and Services Companies says India is actually part of the solution and not the problem.
[Som Mittal, President, National Assoc. of Software & Services]:
“When we buy goods we create jobs there and even when we do work for American companies it makes them more competitive. So, we are actually helping him save jobs and create jobs back in America. So, I think that perception needs to be cleared.”
An increase in US visa fees, a ban on off-shoring by the state of Ohio and the industry’s portrayal in campaign ads as a drain of US jobs, has set a frosty tone ahead of Obama’s visit to India.
High unemployment rates have put pressure on Washington to protect domestic jobs.
This week, the White House said that a key message from Obama during his visit would be “to make sure there’s opportunities for US jobs, US exports.”
India’s outsourcing sector, which accounts for 5% of the country’s economic output, depends on US business for around 70% of its revenue.
Outsourcers say they enable clients to innovate and compete, providing skills not readily available in the United States.
Outsourcing work to a lower-cost U.S. site can save roughly 20-25%, while moving work to India can save 70 to 80%.
Source:-http://english.ntdtv.com/ntdtv_en/ns_asia/2010-10-29/782083559371.html
