US move to curb outsourcing regressive, says India

September 11th, 2010 - 4:28 pm ICT by IANS  

Barack Obama Bangalore, Sep 11 (IANS) Union Commerce and Industry Minister Anand Sharma Saturday termed as “regressive” the US moves to curb outsourcing and warned that protectionist tendencies would deepen recession.
“Protectionist tendencies are unhealthy for any economy,” Sharma said, addressing the staff of IT major Infosys Technologies here.

“Indian IT companies create jobs not only in India but in the US as well,” he noted.

“Protectionist tendencies end up deepening recession,” Sharma warned.

His caution came in response to the recent decision of Ohio state, US, to ban outsourcing IT projects and President Barack Obama’s remarks against offshoring.

Infosys chairman and chief mentor N.R. Narayana Murthy said the only way out for Indian corporates was to innovate.

“There will always be geo-political issues that could create friction. While ministers like Sharma will take it up at appropriate levels, the corporations must keep innovating,” he said.

“We have to look at innovating more and more so that our clients will realise the importance of outsourcing,” Murthy said.

“Only way for any corporation to survive, succeed and grow profitably is to innovate,” he added.

Sharma said Friday here that India will raise the visa fee hike issue with the US administration at the upcoming joint Trade Policy Forum (TPF) meeting Sep 21 in Washington.

India will also discuss the Ohio state ban and Obama’s remarks.

“We have already flagged to the US government that we intend to place the visa fee hike issue on the table to discuss at the Forum. I hope they will reflect and we will be able to find a meaningful solution,” Sharma said.

Asserting that the hike in H1-B and L1 visa fee was on the top of the Indian agenda, Sharma said he has conveyed the government’s serious concern to US Trade Representative (USTR) Ron Kirk, who co-chairs the Forum with him.

“Though the Ohio ban on outsourcing is a state issue and Obama’s remarks against off-shoring are a sovereign issue, we are going to discuss it at the Forum because eventually outsourcing plays a major role,” Sharma said.

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