Nasscom positive about India's outsourcing future despite Obama's win

According to Ganesh Natarajan, chairman of National Association of Software and Service Companies or Nasscom, the consortium that serves as the apex body of the Indian IT software and BPO industry, the present gloom in the IT-BPO industry is due to economic slowdown and has nothing to do with concerns that Obama might cut down on outsourcing.

During his election rally, Obama gave hints of a protectionist regime if he is voted to power and promised tax breaks to "companies that hire in the United States and end tax breaks for companies that ship US jobs overseas," triggering concerns in India that fall in outsourcing orders could lead to reduced profits and massive job cuts.

However, Natarajan said Obama's win the presidential election would not mean death of outsourcing business for India. His triumph, Natarajan said, would in fact spur the growth in outsourcing business as a strong US economy would result in huge opportunities for India.

"Barrack Obama's plans to cut down on outsourcing does not pose a threat to the Indian IT-BPO industry. Our expertise in several areas of outsourcing will always attract new projects from the US," Natarajan said, adding that US companies will be under too much pressure to cut costs, and offshore outsourcing will be one way to do it.

"We should not worry about any ban on outsourcing. It is just not going to happen. If at all, he might give incentives to job creation in America which we support and I don't think that is going to add any adverse impact on Indian outsourcing. After all, Obama administration at present have far more important issues to tackle with, like that of the current financial crisis. America will charter a new course for itself in history which will give opportunities for all of us in India," he said.