Will Barack Obama's victory affect Indian Outsourcing Industry?

--By Sagar Satapathy, Editor-in-Chief

With Barack Obama elected as the 44th President of the United States, every Indian is wondering if his victory will affect the Indian Outsourcing Industry. The million-dollar outsourcing industry in India is looking forward to the United States for its survival. Although the BPO (Business Process Outsourcing) companies are receiving good number projects from the European countries, there is no denying that we still largely depend on the US companies when it comes to outsourcing.

Over 80% of the BPOs and Call Centers in India are regulated by the US companies. During his election campaign, Barack Obama had made some controversial remarks on outsourcing of American jobs to India. If he stands firm on what he said, then it will spell a doom for Indian outsourcing industry.

Barack Hussein Obama has been very aggressive on this issue from the very beginning. Initially, he vehemently opposed the outsourcing of jobs to India, whereas McCain kept a lenient view. At a later stage, Obama admitted that "Outsourcing to India and China is irreversible", which brought relief to millions of call center and BPO employees in India.

However, Obama again fired a fresh salvo against outsourcing during the last stage of his campaign, causing panic in India. Obama announced tax relief for the companies that will create job opportunities in America.

Experts and analysts have different opinions on this issue. Will Obama put a ban on outsourcing? No, says Ganesh Natrajan, Chairman, NASSCOM. "We should not worry about any ban on outsourcing, as it is just not going to happen. Obama might give incentives to job creation in America, but it should not have any adverse impact on Indian outsourcing industry," said Ganesh Natrajan.

Here's the most important question arises, "Can America afford to lose billions of dollars they get every year from outsourcing jobs to India? Will Obama do something that will hit American Economy the most during this global meltdown?" No, he will never do that. Obama knows the importance of Indian outsourcing industry to American economy. Obama knows how much revenue the US gets from Indian IT, ITeS and BPO sectors. His heart may say something, but he will definitely act according to the call of his conscience.

The BPO employees in India must not worry. Outsourcing is here to stay. There may be a slowdown, there may be a saturation. But the outsourcing industry will not collapse. It will firmly stick to the ground with or without Barack Obama.

Industry hails Obama victory; downplays fear on outsourcing

Indian industry, particularly those working closely with US firms, today hailed Barack Obama's victory as the next American President, playing down the fears of an adverse impact on flourishing outsourcing business.

"Relations between the two countries will grow further. Bilateral trade is expected to reach USD 60 billion this year," President of the Indo-American Chamber of Commerce S K Jain said. India-US trade stood at USD 45 billion in 2007-08.

Jain said Obama has been supporting Indo-US relations, including the nuclear deal. The IACC chief said he has no fears about India losing on the business process outsourcing (BPOs).

The American Chamber of Commerce in India, popularly known as AMCHAM, also down played election statements of the Democratic leader.

"We are convinced that any statement, which may been made, will not have any adverse impact on outsourcing to India," AMCHAM Executive Director Ajay Singha said.

Singha, who is hosting a delegation here from the US next week, said the American business is in the hands of the private sector without much government control.

India's software services exports (including IT and BPOs) grossed in revenues of over USD 40 billion in 2007-08 with over 60 per cent of the business coming from the US.

Exporters, however, remained apprehensive on Obama's election stand of fiscal disincentives to the US firms outsourcing jobs.

"The anti-outsourcing stance of Obama as well as H1B visa (restrictions) may affect Indian IT and BPO sector," Executive Director of the Federation of Indian Export Organisations (FIEO) Ajay Sahai said.

Outsourcing Threat For India

Barack Obama's statement to put a break on outsourcing if elected as American President should
not come as a threat to Indian IT/ITeS companies.

India's apex IT body, Nasscom, chairman Ganesh Natarajan said Obama's government, if at all it comes to power, will focus more on creating new job opportunities for its people rather than cutting down on outsourcing. (His plan is to make it cost prohibitive for organizations that currently offshore/outsource positions that once existed in the US.)

Mr Natarajan was the chief guest at the 6th Convocation of Nirma University of Science and Technology. "Barack Obama's plans to cut down on outsourcing does not pose a threat to the Indian IT industry. Our expertise in several areas of outsourcing will always attract new projects from the US," he said while addressing the media.

He said, certain expertise was country-specific and won't be affected despite a change in government policy . He also said the Indian IT/ITeS companies should try and tap new and emerging markets in Japan, China , Asia Pacific, Africa and Latin America. (Great idea, however they have their own outsourcing/offshore initiatives).

Speaking further about the Indian IT industry, he said, the global slowdown has not affected the industry at all.
The industry was going almost on the lines of the growth projection as done for this year in 2007 by Nasscom.

As against the projection of 26-29 %, the growth has been 20-22 %. In terms of employment opportunities as well, the IT/ITeS industry will add 2.75 lakh workforce to the existing workforce of 20 lakh.

At this convocation, the 217 awardees for various post-graduate courses included 26 MSc students, 28 MPharm students, 102 MTech students, and 61 students of the MCA Programme.

The 768 awardees for the bachelor's degree included 658 students of B Tech, 64 students of BPharm and 56 students of BPharm (Hons). Additionally, 301 students were also awarded their diploma in engineering.

Obama's outsourcing threat not serious for India: Nasscom chief

The US democratic presidential nominee, Barack Obama’s statement to put a break on outsourcing
if elected as American President should
not come as a threat to Indian IT/ITeS companies.

India’s apex IT body, Nasscom, chairman Ganesh Natarajan said Obama’s government, if at all it comes to power, will focus more on creating new job opportunities for its people rather than cutting down on outsourcing.

Mr Natarajan was the chief guest at the 6th Convocation of Nirma University of Science and Technology. “Barack Obama’s plans to cut down on outsourcing does not pose a threat to the Indian IT industry. Our expertise in several areas of outsourcing will always attract new projects from the US,” he said while addressing the media.

He said, certain expertise was country-specific and won’t be affected despite a change in government policy . He also said the Indian IT/ITeS companies should try and tap new and emerging markets in Japan, China , Asia Pacific, Africa and Latin America.

Speaking further about the Indian IT industry, he said, the global slowdown has not affected the industry at all.
The industry was going almost on the lines of the growth projection as done for this year in 2007 by Nasscom.

As against the projection of 26-29 %, the growth has been 20-22 %. In terms of employment opportunities as well, the IT/ITeS industry will add 2.75 lakh workforce to the existing workforce of 20 lakh.

At this convocation, the 217 awardees for various post-graduate courses included 26 MSc students, 28 MPharm students, 102 MTech students, and 61 students of the MCA Programme.

The 768 awardees for the bachelor’s degree included 658 students of B Tech, 64 students of BPharm and 56 students of BPharm (Hons). Additionally, 301 students were also awarded their diploma in engineering.

Breaking News

In a historic presidential win tonight (November 4, 2008), Barack Obama, the junior senator from Illinois, addressed the nation for the first time as President-Elect. He will become the nation's first African American president when he is sworn into office on Inauguration Day, January 20, 2009.

Barack Hussein Obama was born Aug. 4, 1961, in Honolulu, Hawaii. His father, Barack Obama, Sr., was born of Luo ethnicity in Nyanza Province, Kenya. He grew up herding goats with his own father, who was a domestic servant to the British. Although reared among Muslims, Obama, Sr., became an atheist at some point.Obama’s mother, Ann Dunham, grew up in Wichita, Kansas. Her father worked on oil rigs during the Depression. After the Japanese attack on Pearl Harbor, he signed up for service in World War II and marched across Europe in Patton’s army. Dunham’s mother went to work on a bomber assembly line. After the war, they studied on the G. I. Bill, bought a house through the Federal Housing Program, and moved to Hawaii.Meantime, Barack’s father had won a scholarship that allowed him to leave Kenya pursue his dreams in Hawaii. At the time of his birth, Obama’s parents were students at the East–West Center of the University of Hawaii at Manoa.