Post date: Sep 12, 2010 11:58:29 AM
Anand Sharma, India's federal Trade Minister, terms the U.S.'s decision to curb outsourcing of IT projects a regressive measure, which will lead to further delays in the process of economic recovery.
BANGALORE, KARNATAKA, INDIA (SEPTEMBER 11, 2010) ANI - Anand Sharma, India's federal Trade Minister, said the move of the U.S. state of Ohio to forbid outsourcing of Information Technology (IT) projects by government departments was regressive and would eventually slow down the process of economic recovery for the world's largest democracy.
"We feel that these are regressive measures because the leading economy of the world, that is, the United States of America (USA), has to have more confidence to engage with the rest of the world. In our view, in testing times, it is important to step out and engage to dismantle the existing barriers, and not to engage in new ones. Doing so, particularly the protectionist measures, always end up deepening the recession and delaying the economic recovery," said Sharma.
Addressing a conference at Infosys, India's foremost IT giant in southern Bangalore city, Sharma added that the ban would be counter-productive as the Indian IT sector has made a significant contribution in the US.
Referring to the visa fee hike for IT professionals, which the US has escalated by 2,000 U.S. dollars for the two categories - H1B and L1 - that IT companies use to send workers to the US for project work, Sharma said that Indian corporates have created employment opportunities in the West as well.
"Indian corporates, including the IT industry, have created jobs not in this country but even in the United States of America," Sharma emphasized.
Indian IT industry alone has created 250,000 jobs in the U.S. in the last three years, even at the time of recession.
The minister is expected to address these concerns with the United States administration at the forthcoming Joint Trade Policy Forum meeting and Global Services Summit in Washington on September 22.
However, responding to Sharma's arguments, Narayana Murthy, founder of Infosys Technologies said, that the corporates have to prove their worth in the global market to keep pace with clients.
"Ministers like Shri Anand Sharma will take it up at appropriate levels. We in the corporation, we have to look at how we can innovate more and more and more, so that our clients will realize the importance of transacting with us," Murthy said.
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 6 percent to $12.4 billion in the last fiscal year that ended in March.