Outsourcing: Need to watch US political scenario, says envoy

Nasscom to raise outsourcing issue during Obama visit

PTI | November 4, 2010



India needs to watch how the anti- outsourcing sentiment evolves in the "new political scenario" in the US, Ambassador to the US Meera Shankar said today.

"We have to see how national debate evolves in the new political scenario, where you have a House going to the Republicans, Senate being probably retained by Democrats and to a different political scenario," she said while responding to a query on the anti-outsourcing rhetoric in the US.

Shankar also said she does not want to predict or comment on political developments in the US.

Regarding a question on whether outsourcing would be a diversion during President Barack Obama's visit this week, Shankar said, "I think the relationship is one, where we discuss issues which are of the interest to the two sides in a spirit of candour and in the spirit of maturity..."

"I think that is the way we will discuss all the issues of interest to both the sides," she added.

Recently, the state of Ohio had banned IT outsourcing.

Democrat and Ohio Governor Ted Strickland, who once wooed Indian companies to invest in the state, justified the move, asserting that outsourcing undermines economic development and even has unacceptable business consequences for his state.

Moreover, Obama earlier this year announced that tax benefits would be cut for American companies that ship jobs overseas.

Meanwhile, apex body Nasscom has said it will raise the domestic IT industry's concerns about the recent US visa fee hike and rising anti-outsourcing measures during the American President's visit to India this week.

President Obama is scheduled to arrive in India on November 6.

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