The Hindu Business Line : Obama effect on IT

Barack Obama has stated that his top priority would be an economic recovery programme. In the process of fighting the slowdown, he needs the co-operation of countries such as India and China. It is doubtful if the new president will take up controversial issues, such as stopping of outsourcing. At this stage any step that is going to weaken the competitiveness of US companies will do untold harm to the economy.

With greater clout and an enhanced profile, India can influence policymaking to some extent in the US. Therefore, the possibility of stopping outsourcing by the Obama administration will be remote. It is difficult to say if Obama will open up new vistas for IT and BPO in the immediate future. In my view new opportunities will take some time. They will come once the US economy regains strength. At that time US will be again looking for ways of reducing costs to gain competitive advantage. This may afford greater opportunities for Indian professionals and workers. — Dr K.K. Ammannaya, email

Obama’s priority will be the US economy and we may have to wait and see what he does. — R. Swaminathan, email

The new US President has said he is not in favour of outsourcing jobs to other countries. He also said he would end tax breaks for companies that outsource. In spite of the US meltdown, some players feel that there are several opportunities in various sectors. We have to wait and watch. — V. Ramjee, email

If India is really confident of its BPO strengths, why are we afraid of losing business? Today, Americans are prepared to work for less than 25 per cent of their pre-meltdown pay. This may work out cheaper than outsourcing to India. Our heavy dependence on the US has led to this situation. We never had a contingency plan. — Ashok Jayaram, email

The slowdown in the US would encourage the nation to implement cost-saving measures and restructure the economy.

Some major functions have not been outsourced yet. The policy of ending tax breaks for companies that send job overseas is a testimony to Obama’s concern for the nation. Public contracts are awarded to companies committed to American workers. Yet, the incentives are not enough to discourage companies to outsource jobs to other countries. — T.V. Jayaprakash, email

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