software outsourcing to IndiaSaturday, June 04, 2005
India has emphasized, they will want a new world trade pact which will prevent US and European countries to ban offshore software outsourcing jobs. Many different proposals in the US Congress in recent years have sent alarm bells in New Delhi. And to prevent this to become a law, India expects the US to lock in current legislation which allows companies to move their work offshore as a part of the new world trade agreement. This was mentioned by the Minister of Commerce, Mr. Kamal Nath.
Mr. Nath also mentioned, “We are very concerned with the U.S. binding the current situation because all these noises just keep coming,” in a speech to the US-India business council. India is rapidly growing its software industry and it is a vital part of GDP. Banglore and other IT developed countries like Hyderabad have become widely known in software outsourcing and other IT related services. Indian offshore service business is employing 900,000 people and it is considered that it will double jobs by 2008. According to Mr. Nath, concerns about outsourcing are more related to emotions rather than the economy. He mentioned that US companies can lower their cost by tapping India’s plentiful well-educated workforce.
India is also looking at short term one year visit by their professionals. This issue is very sensitive as many US lawmakers view it as back door immigration channel and are opposing it strongly. There are many programmers working in the US with business visa under software outsourcing deals.
Software outsourcing India – Tatvasoft