Obama to stop outsourcing, India Inc worried

President Barack Obama's latest stand on outsourcing is worrying India- with the US already in recession and the President's announcements against outsourcing, the US is in protectionist mode.

“We will restore a sense of fairness and balance to our tax codes by finally ending the tax rates for corporation that ships our jobs overseas,” says President United States, Barrack Obama.

A strong warning by President Obama that will discourage US companies from outsourcing jobs to cheaper countries like India. In his first Congressional address, President Obama says it's time for America to lead again.

“We don’t accept that future where the jobs and industry of tomorrow take root beyond our borders and I know you don’t even, its time for America to lead again,” adds Barack Obama.

The President's constant anti-outsourcing tirade is a worrisome for India Inc. The industry's worries are understandable especially since India gets more than 60 per cent, or $64 bn, outsourcing work from the US.

This is not the first protectionist move the US has made since Obama took charge. Recently, it introduced an H-1B hiring ban for companies receiving bailout money.

The ban is likely to hit India's techies hard. Of the 65,000 H1-B Visas issued annually by the US government, 21,667 are to Indian techies.

For the Indian IT Industry, already hit by the recession, President Barack Obama's stand on outsourcing could not have come at a worst time.