Slamming the U.S. state of Ohio's controversial move to forbid outsourcing of government IT projects, an American entrepreneur affirms that outsourcing of talent from India is important for bilateral economic growth in the globalised neo-liberal, market-driven era.
BANGALORE, KARNATAKA, INDIA (SEPTEMBER 14, 2010) ANI - Slamming the controversial ban on outsourcing Information Technology (IT) projects by the U.S. state of Ohio, American entrepreneurs have said that both Indian and American economies benefit from outsourcing to India.
While interacting with mediapersons in Bangalore city of India's southern state of Karnataka, Jeff Richardson, an American entrepreneur said that outsourcing was important in order to fulfil global commitments.
"In our industry, in the hi-tech industry, there is a long history of being globalised. Our customers are worldwide, we need to develop products worldwide to go support those customers, and I don't see that's really going to fundamentally change or can change in the near future, because it is really a core of what has made of a lot of companies - especially hi-tech companies - what they are today," said Richardson, Executive Vice President, LSI Corporation.
He also told the gathering about the satisfaction with the outsourcing process through the Indian talent pool.
"Well, you know we have a global R&D strategy, and so for us, it is less about cost actually, although cost is a huge benefit. It is actually more of an ability to get access to key talent so we looked at the company's growth in terms of the products we wanted to build, in terms of the road map we wanted to bring to our customers. We felt the only way to rapidly staff up and increase our R&D capacity to deliver on those products was to actually invest more on development resources in India, and so far we have been very successful in our ability to do that," said Richardson.
The Indian IT industry alone has created 250,000 jobs in the U.S. in the last three years, even at the time of recession.
On previous instances Indian ministers have said that the ban would be counter-productive, as the Indian IT sector has made a significant contribution in the US.
The measure, mooted by Washington, has been viewed as a blow to Indian IT companies, which have been tapping opportunities in numerous sectors in the US.
India's back-office outsourcing sector is estimated to have grown six percent to $12.4 billion in the last fiscal year that ended in March.