'Obama's move may spell disaster to IT industry'

KPCC President, RV Deshpande on Friday felt US President Barack Obama’s statement on the outsourcing business, if implemented, would be disastrous to both the United States and India.

Addressing mediapersons at the party office on Queen’s Road in Bangalore, Deshpande ridiculed Chief Minister B S Yeddyurappa and IT-BT Minister Katta Subramanya Naidu’s statement that nothing will happen to the IT industry even if the US pulls out all the outsourcing business from Bangalore. Deshpande claimed that 60 per cent of the IT related jobs are coming from the US and it will affect  growth of the City very badly.

Premji worried

Meanwhile, terming US President Barack Obama's tax reform proposal as a ‘worrying’ development, Wipro Chairman Azim Premji said the statement was contrary to what Obama had said at the recent G-20 summit in London.

Speaking to presspersons on the sidelines of the launch of Wipro's product qualification and compliance certificate facility 'Tarang' in Bangalore on Thursday, Premji recalled Obama’s speech at the Summit, where the US president had said that the leading economies in the world had rejected protectionism that could deepen the crisis. On Monday, Obama had announced end of tax incentives to those US corporations that outsource jobs to other countries, including India.