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Indian IT firms cheer blocking of American bill
Wednesday, 03 December 2003, 20:30 IST
NEW DELHI: India's money spinning IT industry Wednesday welcomed the blocking of a bill in the American state of Indiana aimed at banning non-US citizens from seeking government contracts.
Local industry officials say the decision comes as a "morale booster" for Indian technology companies that are facing a backlash in the West over outsourcing of jobs.
"The blocking of the bill by a US state is a very good precedent," said Sameer Kochhar, CEO of New Delhi-based IT industry research firm Skoch Consultancy.
"It puts things in perspective that outsourcing not only benefits Indian companies but also the economy of the nation that gets work done at a sharply lower cost," Kochhar told IANS.
"The decision certainly comes as a morale booster for the Indian IT industry. The local companies should now put their act together and highlight the advantages of outsourcing and clarify some of the doubts."
In a major development Tuesday, lawmakers in Indiana opposed a bill, introduced by Governor Joe Kernan, to ban non-US citizens from government contract jobs, as they felt it could affect the American state's drive to attract foreign investment.
The lawmakers will now try to "limit the scope" of the bill and find "better ways" to help Indiana companies win government contracts. A modified bill could be debated in January.
The state of Indiana last month dropped a $15.4 million outsourcing contract for IT services with an Indian software company. The move was part of an initiative launched by Governor Kernan to protect local companies and jobs.
The deal was agreed upon only a few months earlier by the state with TCS America, a subsidiary of leading Indian firm Tata Consultancy Services.
Kernan cancelled it after learning that TCS America planned to import 65 Indian workers to work alongside 18 current state employees.
The Indiana controversy is only the latest involving states and offshore companies. A New Jersey politician is also rebelling against outsourcing of government jobs to other countries.
Senator Shirley Turner is reported to be considering legislation that will ban the outsourcing of state contracts to companies based abroad.
India's vast pool of English-speaking and cheap manpower, educational system and training programmes have helped transform the country into a global outsourcing superpower.
The rapidly growing business process outsourcing (BPO) industry has virtually turned the country into an electronic housekeeper to the world, taking care of a host of routine activities for multinational giants.
More than a quarter of Fortune 500 companies like General Electric, American Express, British Airways, HSBC and Citibank are shifting their back office operations to India.
Britain's largest insurer Aviva Plc announced Tuesday it would create 2,500 back office jobs to India in addition to the 1,200 jobs that had already been transferred here.
The National Association of Software and Service Companies (Nasscom), India's premier IT industry lobby group, welcomed the latest Indiana move saying outsourcing would benefit the Indian as well as the US economy in the long run.
"We hope the decision will also have an impact on protests that are going on in some part of the world against outsourcing. We understand the fact that outsourcing is a win-win situation for all stakeholders," said a Nasscom official.
Indian IT firms cheer blocking of American bill
From Indo-Asian News Service
New Delhi, Dec 3 (IANS) India's money spinning IT industry Wednesday welcomed the blocking of a bill in the American state of Indiana aimed at banning non-US citizens from seeking government contracts.
Local industry officials say the decision comes as a "morale booster" for Indian technology companies that are facing a backlash in the West over outsourcing of jobs.
"The blocking of the bill by a US state is a very good precedent," said Sameer Kochhar, CEO of New Delhi-based IT industry research firm Skoch Consultancy.
"It puts things in perspective that outsourcing not only benefits Indian companies but also the economy of the nation that gets work done at a sharply lower cost," Kochhar told IANS.
"The decision certainly comes as a morale booster for the Indian IT industry. The local companies should now put their act together and highlight the advantages of outsourcing and clarify some of the doubts."
In a major development Tuesday, lawmakers in Indiana opposed a bill, introduced by Governor Joe Kernan, to ban non-US citizens from government contract jobs, as they felt it could affect the American state's drive to attract foreign investment.
The lawmakers will now try to "limit the scope" of the bill and find "better ways" to help Indiana companies win government contracts. A modified bill could be debated in January.
The state of Indiana last month dropped a $15.4 million outsourcing contract for IT services with an Indian software company. The move was part of an initiative launched by Governor Kernan to protect local companies and jobs.
The deal was agreed upon only a few months earlier by the state with TCS America, a subsidiary of leading Indian firm Tata Consultancy Services.
Kernan cancelled it after learning that TCS America planned to import 65 Indian workers to work alongside 18 current state employees.
The Indiana controversy is only the latest involving states and offshore companies. A New Jersey politician is also rebelling against outsourcing of government jobs to other countries.
Senator Shirley Turner is reported to be considering legislation that will ban the outsourcing of state contracts to companies based abroad.
India's vast pool of English-speaking and cheap manpower, educational system and training programmes have helped transform the country into a global outsourcing superpower.
The rapidly growing business process outsourcing (BPO) industry has virtually turned the country into an electronic housekeeper to the world, taking care of a host of routine activities for multinational giants.
More than a quarter of Fortune 500 companies like General Electric, American Express, British Airways, HSBC and Citibank are shifting their back office operations to India.
Britain's largest insurer Aviva Plc announced Tuesday it would create 2,500 back office jobs to India in addition to the 1,200 jobs that had already been transferred here.
The National Association of Software and Service Companies (Nasscom), India's premier IT industry lobby group, welcomed the latest Indiana move saying outsourcing would benefit the Indian as well as the US economy in the long run.
"We hope the decision will also have an impact on protests that are going on in some part of the world against outsourcing. We understand the fact that outsourcing is a win-win situation for all stakeholders," said a Nasscom official.
Source: IANS
Source: IANS