Barack Obama’s re-election as the US President evoked mixed reactions from the Indian information technology industry.

While many industry players welcomed his second win, some said it is not good news for the Indian IT outsourcing companies.

Significant opportunity

“There is going to be a lot of focus on economic growth, job creation and continuity of drive. Lot of economic activities in terms of financial performance and better growth rates will happen,” N. Chandrasekaran, Chief Executive Officer and Managing Director, Tata Consultancy Services, said. This will translate into significant opportunity for the technology sector as more jobs will be created both in the US and in India, he said. Indian IT companies will have opportunity to play a significant role and partner with the US companies, he said. TCS alone has created 2,500 jobs in the US in the recent past.

“There is nothing negative for the Indian IT companies as we are creating local jobs there. Lot of reforms are happening around energy, healthcare and utilities, which will benefit us,” Ganesh Natarajan, Vice-Chairman and Chief Executive Officer, Zensar Technologies, said.

Industry body Nasscom said there would be an opportunity of working with the President and his Administration on mutually beneficial policies that will boost the economies in both nations.

It will enhance bilateral national security matters between India and the US.

“With the global economy still under stress, it is more important than ever that India and the US find ways to partner together to spur innovation, foster economic growth, develop an educated and skilled workforce,” it said in a statement.

Business as usual

Infosys, which has maximum number of issues with the US regarding visas, also hoped for better future.

“With the elections behind us, the uncertainty is over. I am hopeful that they will have more pragmatic approaches to the problems being faced in the US,” Kris Gopalkrishnan, Executive Co-Chairman Infosys, said. However, he also said that there would not be any immediate impact to IT industry and it will be business as usual as of now.

“We, at HCL Technologies, are committed to supporting American corporations and American people on this journey of renewed growth,” Vineet Nayar, Vice-Chairman and Chief Executive Officer, HCL Technologies, said.

While, there have been many debates and reports around outsourcing over the past few months, things will be clearer since elections are over.

“The reality is that outsourcing in areas like IT, legal support and other professional services, helps the US retain or increase jobs. Neither Democrats nor Republicans are likely to compromise the competitiveness of American companies in the global market,” said Umair Muhajir, Vice-President and Global Head, Litigation Solutions, Pangea3, a legal process outsourcing firm.

‘Not good news’

But, Phaneesh Murthy, President and Chief Executive Officer iGate, said Obama’s win is not the ‘best news for India or the IT outsourcing industry’.

The concern over the deficit and jobs will continue and will force the sluggishness to remain in the economy, he said.

“However, we need to understand how much of the election rhetoric continues into 2013 and that will determine the full implications to us,” he added.

According to E. Balaji, Managing Director and Chief Executive Officer, Randstad India (HR service company), as the US is a highly capitalist market, it would look for cheaper and cost-effective countries for outsourcing. India could be one, but they may look at other alternative countries such as the Philippines, Malaysia, Poland and Romania.

“But, if India has conducive solutions, businesses will continue to come here. India also has to look at opportunities as there is required quota of 1.35 lakh people every year, which should be utilised,” he said.

Therefore, Indian IT firms have good future in the US market, he added.

ronendrasingh.s@thehindu.co.in

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