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Can India remain immune to outsourcing bans from the us??

Created by : sumitra dutta, Consultant, XYZ  | 09 09 2010 06:08:11 +0000
Industry : IT ServicesFunctional Area : Outsourcing(Operations)
Keywords : outsourcing indian outsourcing companies us outsourcing outsource to india ohio state ban on outsourcing
Activity:  575 views;  last activity : 01 10 2011 05:53:00 +0000

Recently we saw that US state Ohio is banning outsourcing work which was given to Indian companies, and also it is said that slowly other states will also follow..

Tata Consultancy Services (TCS), the country’s largest information technology (IT) services company, will remain immune to the US state of Ohio’s ban on outsourcing of government IT and back-office projects to offshore locations such as India. Rather multi-national companies like IBM, Accenture, CSC and HP will be affected more by this.

So, Can India remain immune from Outsourcing bans from the US?? Share your thoughts on this

  
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Well...whats the calculation here...how much do you save if you do provide tax breaks to companies in US who are not outsoucing their jobs??I am not sure...but yes, I think we are immune to such stupid policies of protectionism....that does not help in an open economy....well time can tell how many companies actually stop outsourcing to countries like India where talent is aplenty and brimful...because the amount that they save on outsourcing would still be more than those 'tax breaks'...and its just not the low-end jobs that paul was mentioning, but even the high-end jobs like engineering designing etc that are done by the talented lot in India...oh yes, I am with paul when he says India should also focus more within than depending on just outsourced jobs....but the feeling is that it would be the US who would stand to lose than benefit from such weak initiatives...but really makes no difference to us...coz all we need is some fuel to start our own engine than depend on someone else's fuel to keep our economy running, which am sure we have the capacity to develop....
By Saibal Ray, Sr. Process Engineer, KPIT Cummins Infosystems  09 10 2010 08:02:48 +0000
 
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Its ok if one state is banning from outsourcing, in US nearly 35% of their work gets outsourced and countries like India depend a lot on the outsourcing work which they get from US, so if other states also follow the same with regard to save jobs for themselves then surely India will be affected, US is a large market for us and we don't want to loose the percentage of work which we get here. And if the bans are placed then surely Indian IT companies and many employees will be affected, I don't think we are immune towards US outsourcing bans from US.
By sumitra dutta, Consultant, XYZ  09 09 2010 06:08:11 +0000
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its depand on the time and person . Beat anything in the life. Join social media today. www.sakshatkar.com www.pressvarta.com
By Sushil Gangwar, Chief of Bureau/Editor in Chief, Sakshatkar.com  | 01 10 2011 05:53:00 +0000
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As the USA's economy and unemployment implies that it will be reluctant of outsourcing services.
By Dilip Kumar Pandey, RF Engineer, Ericsson India Pvt. Ltd.  | 09 11 2010 18:59:14 +0000
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yes
By raju singh, Project Lead, search engine  | 09 10 2010 17:05:06 +0000
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India may not remain immune to this new development of banning offshore outsoucing of Govt. projects. As it reads, at present the ban applies to Govt projects or Govt funded projects. It is likely that other states might follow the same steps. Two tier companies and three tier companies in US that depend more on Govt funded projects will be seriously impacted by this new policy which in turn will effect Indian companies. The tax sops that these US companies get are very critical for their profitability and sustinance. Two tier Indian IT companies, which makes largest mid layer of the IT industry, must shift their focus on more sustainable business model than single customer or two customer dependant model. "Innovation" and "quality" are two key stratagies that India Inc needs now and at alltimes.
By Koteswara Rao Sadineni, Head/VP/GM/Financial Controller, Conexant Systems Noida  | 09 09 2010 16:05:09 +0000
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It is absolutely right for US to do something to improve their damaged economy.

Morever, outsourcing, though there is good money in it, stauswise it is not that high placed business as most of these jobs are somewhat like jobs that make us stoop down to cater other's needs. Actually a large number our talents and talented people are under used or wasted in OS business. 

India need to find alternatives to business like doing outsourcing to others etc., that are dampening our main focus on growth.

India has enough potential to grow within itself. It is high time the Indian industrialists look inwards and do more in the area of infrastructure development and take on many major industries that are not here yet, so as to make India less depend on imports and to eventually convert the country as a major exporting nation.    
By Abraham Paul, Senior Telecom Consultant, FCOMNET- Future Groups  | 09 09 2010 15:53:04 +0000
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We have come to a stage where the US decision will not affect much. Agreed that the decision will slowdown the business but Indian companies know pretty well how the business has to be done. Us is not the only market we cater.

If US wants to separate itself from the rest of the world it their worry boss but I don't think we will lose much. If one thing goes then many opportunities open up.
By ANAND M, Freelancer, Human Resources (HR) Consulting  | 09 09 2010 12:09:43 +0000
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This is ridiculous. US is the pioneer of The so called,'Global Economy' ,'Global Market'.Lots of time and paper are wasted before this things earlier.Now these people are frightened of there own theory.When India is opening the door slowly in Business,Education,Social life, Art and Culture,I mean every sector, then you take advantage of that, and when the Indians are showing their performances,You are showing them the back Door.So, when are you in a trap, you should find a way-out. Please do not show your back.
By suman , Consultant, Future Solutions Retail I Ltd  | 09 10 2010 15:52:58 +0000
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rightly said sumitra, even India like all other nations of the world bears the brunt of collapse of American economy. Indian exports and IT activities are largely depending on USA. Though INDIA will reorganise itself but may take some time.
By PRITHVI RAJ DUBEY, Managing Director, RAJ ENGINEERING INDUSTRIES PVT LTD  | 09 10 2010 11:23:11 +0000
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looking at the mad outsourcing work done , as of now i feel this will be a big blow to those companies in this sector , 

And this seriously mean "IT India " needs to quickly shift from pathetic service delivery to innovative product development . 
By Shaikh Mohd. Laeeq, Technical Associate R&D , ThinkLABS Technosloutions Pvt. Ltd.  | 09 09 2010 11:20:14 +0000
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India has set itself up as a primary service setup. So how cant it bee immune. The Rs - dollar advantage was driving everyone towards USA. Now that emphasis has started shifting. IT service providers will start competing in other markets also.

Till alternates are worked out, there will be a dip in earnings, may be even a serious one, but eventually the govt will get involved in having such bans lifted. There are too many issues involved in such banning decisions for it remain unilateral in consideration. There commercial interests, foreign policy issues, in rare cases even technical issues.

Long and short of it is that the sentiment to ban outsourcing seems here to stay though it is coming on line in government contracts only. It will bite. It will hurt us. But in the long run government will get involved and sooner or later the bans will go. The Pro-India lobby in the US is quite strong.
By RAMESH KANDADAI, Principal Consultant, ARM Consultants  | 09 09 2010 07:12:23 +0000
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