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BANGALORE: IT industry body Nasscom has reacted cautiously to US President Barack Obama's remarks on outsourcing, saying global outsourcing had
benefited US firms that generate over 50 percent of their business overseas.

"American companies generate more than 50% of their business outside the US. Their workforce is global. To be globally competitive, they also depend on globally shared services," Nasscom president Som Mittal said.

Welcoming Obama's observations on protectionism, Mittal said on late Wednesday that the US president's statement would have a positive effect on his country's economy that is going through a recession after a long time.

"Obama has, in fact, supported the need to avoid protectionism. We have to see how he would prevent job losses without resorting to protectionist measures," Mittal pointed out.

Citing the latest US state department data on employment, Mittal said job losses in construction, retail and manufacturing were more than in services, especially in the IT space.

"Compared to other sectors, job losses in the US tech sector were 2.2% as against the overall unemployment rate of 7.2%. The US administration will not do anything that would harm its industry or economy, which is driven by the technology leadership its companies enjoy," Mittal noted.

Asked what impact Obama's statement on outsourcing would have on the Indian IT and BPO (business process outsourcing) industry, which has been reeling under global recession and financial meltdown in the US, Mittal said he had not seen any specific proposal to the contrary.

"We have not seen any specific proposals to the contrary. The people here (in the US) are more concerned about healthcare, energy, saving jobs and economic recovery
than outsourcing, on which Obama used only nine words," said Mittal.

Admitting that the economic downturn had created turmoil worldwide impacting businesses and job creation, Mittal said global sourcing had helped (US) companies gain the vital competitive edge - time-to-market, transformation of businesses, integration of processes, reduce costs and enhance efficiency, which were key drivers for economic revival, worldwide.

Read Full story at : Times of India