JOIN USUS President Barack Obama's earning a second innings in the White House has strong implications on the Indian outsourcing sector. It has left the industry wondering what lies ahead for them in the region.
Whereas some are optimistic that decision making will finally pick up, others argue that he has till date been strong in his anti-outsourcing stance and the same might continue into his second term.
Analysts don’t expect major changes in the visa and immigration policy regime with the re-election. Partner with technology advisory company Information Services Group Siddharth Pai told Deccan Herald, “Tax incentives are likely to follow for companies creating jobs in the country (the US).”
Pai added that decision making, which has been slow for sometime now, will pick up as policy decisions will be clearer after the election.
India’s information technology body Nasscom displayed optimism on the re-election of Obama. The body said on Wednesday that since the US economy is so important globally, India is looking forward to working closely with the US in areas like cyber security.
“We would see changes in immigration policy as the skills gap in the US has to be filled by bringing in people from other countries. We also hope that the US Congress plays a crucial role in framing policy,” Nasscom President Som Mittal said at Nasscom Product Conclave being held in Bangalore.
Clarifying the loss of jobs in the US, Nasscom said that job loss in the manufacturing sector from outsourcing was much greater last year.
Obama had attacked Republican rival Mitt Romney during the presidential election campaign calling him a “pioneer” in outsourcing jobs. This, many believe, probably gave him the edge on polling day.
HCL Technologies CEO Vineet Nayar said that they hope Obama’s tenure will uplift business sentiment in India and kickstart the economic resurgence in America.
iGATE CEO Phaneesh Murthy was reported to have said on Wednesday that that the industry should wait and watch as it remains to be seen how much of the election rhetoric continues into 2013.
TCS Chief Executive Officer and Managing Director N Chandrasekaran said in a statement on Wednesday that technology will play a strong role in driving the next phase of growth and Indian IT companies will have the opportunity to play significant roles in partnership with US companies to achieve this. "This will lead to further job creation in the US and other parts of the world,” he said.
In the past, Indian IT companies have recruited aggressively in the US to counter the anti-outsourcing stance taken by the Obama administration as well as objections to alleged job losses incurred from shipping jobs to India. Wipro Chairman Azim Premji had said at a routine quarterly results announcement in January this year that Wipro would increase its overseas hiring, taking the headcount to 50 per cent of the company’s total staff.
India Inc hails Obama victory
New Delhi, DHNS: Amidst concern over US next move on outsourcing, Indian Industry leaders on Wednesday welcomed the re-election of Barack Obama as the US President saying that continuity would help for strengthening the bilateral relations.
“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,” CII President Adi Godrej said.
Bharti Group Chairman Sunil Bharti Mittal said: 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.
Re-election ensures continuity of economic policies and programmes not only for bottoming out economic slowdown but also for creating a new architecture for a sustained economic growth to put the world economy back into rail, said National President - Indo-American Chamber of Commerce (IACC) Shourya Mandal .
Nasscom wants US to issue work permits
Bangalore, DHNS: Nasscom, the Indian IT industry body has demanded work permit or work visa in the US so that employees can take that route instead of H1B and L1 visas.
On the sideline of a Nasscom event President Som Mittal said that a work-permit, which
is typically just an employment visa and not linked to immigration is needed in the US.
“India has work visa that last for 3-5 years and US people in India work have access to that. I feel US should also have such an option in visas,” Mittal added. Other countries that have such permits are UK, Germany and Switzerland.