“If the Wall Street cheers are any indication, it looks like economic sense will prevail in policy decisions, and that’s good news for outsourcing ,” said the CEO of one of the top Indian tech firms.
"For all of us, a vibrant, growing and strong America is good. We hope both the Democrats and Republicans bring jobs and the economy back on track," said Som Mittal , president of Nasscom, the country’s apex software and BPO industry association . The win would mean more checks and balances, he said.
Since the recession began in December 2007, the US economy has shed 8.4 million jobs, and according to a research note put out by the Federal Reserve Bank of San Francisco , up to 2,94,000 new jobs will need to be added every month to bring the unemployment rate below 8%. Both the Democrat party and the president have responded by taking a populist approach to certain issues, especially unemployment. Chuck Schumer , the senator from New York, lashed out at Infosys a few months ago, calling it a chop shop, a derogatory term which refers to stolen auto shops where parts are dismantled to be resold later.
The governor of Ohio, Ted Strickland , last week announced that his state will ban outsourcing of work to overseas destinations by government departments. President Obama , who was voted to power in 2008 on the back of strong trade union support, also announced last month that the government will end tax breaks for firms that send jobs overseas . "It’s true that Republicans are seen as more favourable to India but I don’t see their win as having a specific positive or negative impact for India.
Broadly, Republicans believe in a market economy and open trade — these are also some of things India is asking for. To that extent, yes, it is positive," said the chairman of a software services firm. Analysts also felt the poll results were largely neutral for the Indian outsourcing industry. “I don’t see much of an impact one way or the other. At the end of the day, it is about jobs and the unemployment rate in the US,” said Praveen Bhadada, manager-consulting , Zinnov Management Consulting .
India’s outsourcing industry has been on the defensive after the US passed a controversial decision to increase visa fees for funding a Mexico Border Security plan last month
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