Anger on the Rise in US against Indian companies

[AZADPAKISTAN2009]

India Could Be the Next Target for Angry Americans
Posted by: Steve Hamm on March 23

Reference:
India Could Be the Next Target for Angry Americans - BusinessWeek

Fear and loathing are on the rise in the United States. Right now the emotions are focused on AIG and Bernie Madoff—deserving targets for populist ire. But mob passions can’t be controlled, so there are huge risks to the United States and the world if the mob and its emotions start to rule. The greatest dangers are that the government won’t be able to rescue industries and institutions that should be rescued to keep the economy from totally tanking, and that protectionism will take hold both in the US and worldwide.

Today, I’m focusing on protectionism and its fallout. The New York Times published a Page 1 story this morning showing how protectionism is on the rise worldwide in response to global economic pressures. I picked up a piece of analysis over the weekend from economist and author Paul Collier’s book, The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It. He points out that the last period that the world went protectionist in a big way was the years 1914 to 1945. We can see what a raging success that was!

When the mob gets tired of pursuing AIG and Madoff, it will look for other targets to bay after. India is at risk. Inciter Lou Dobbs keeps pounding away at the foreigner and immigrant. Meanwhile, US Senators Richard Durbin and Chuck Grassley are crafting new legislation aimed at further tightening H1B and L1 visa rules. It’s expected to be submitted to Congress by April 3. Visa reform is legitimate, if there are abuses. But it becomes dangerous if the legislation ignites an angry broadbased backlash against India and offshoring.

Don’t get me wrong. I think a measured dose of protectionism can be useful at times of crisis or in response to abuses by other nations. It’s legit if it’s done rationally and in a carefully targeted way. It’s not okay if it erects major barriers to trade.

It could harm both nations if the US goes after India. For starters, where’s the harm or unfairness? Stats from the Bureau of Labor Statistics show US employment in the category of computer systems design and related services at 1.463 million in February. That’s down just 5,000 from a peak of 1.468 million last November. This is the category of employee that would be most affected by IT offshoring. Yet it’s just off an all-time high—and at a time when Wall Street has fired thousands of techies because of its own mistakes, not anything the Indian tech industry has done. I tried to get business process outsourcing-oriented job stats from the BLS, but they mix up BPO-type jobs with janitors and security guards, so it’s impossible to connect shifts there with offshoring.

Nasscom, the Indian software/service trade association, hired McKinsey & Co. during the last recession to do an analysis of the impact of Indian outsourcing on the US economy and jobs. The results showed a positive impact—more jobs created. The argument is that by making American companies more efficient, offshoring makes it possible for them to grow and hire additional employees. There’s logic to that, but, since the Indians hired McKinsey to do the study, the conclusions aren’t as credible as they would be if the study was independent.

Concerning the potential for US visa restrictions, he says: “Trade is a two-way street. We need to keep the movement of people open.”

That’s a key point. Trade isn’t just about merchandise. It’s about labor and capital, as well. And if American pundits and policymakers fail to realize that, trade between the US and India will be neither free no fair. That’s something people on both sides of the globe need to be concerned about

 

[AZADPAKISTAN2009]

Obama Acts Tough on Outsourcing
Tag it:Written by Neeta Lal
Monday, 01 February 2010

United States President Barack Obama's State-Of-The-Union Address announcement to slash taxes to American firms to generate jobs in America instead of outsourcing them is likely to create more problems than it solves, both in the US and overseas, analysts say.

The nature of the business will make it difficult to impose tax penalties on US firms that outsource jobs, according to a survey in India by Asia Sentinel of industry officials, independent consultants and financial analysts.

"This is a really a complex issue as enormous job losses have taken place in the US and it is difficult to quantify the exact tax losses triggered by outsourcing," John Daval, a New Delhi-based outsourcing consultant, said in an interview. "On the contrary, if Obama's measures are implemented, US consumers may end up paying higher taxes as service costs will also shoot up. Ultimately, this embargo will have to go, as it also violates the American tenets of free trade and globalization."

While many Indian IT firms feel there is no need for panic, others say the president's protectionist stance doesn't bode well for the industry and may shackle its growth. The decision, they feel, will have a multiplier effect on India's outsourcing industry as nearly 70 per cent of India's US$40 billion software is directed at the US market. The Indian software and outsourcing industry employs some 2 million people, earning revenues worth US$52 billion, of which nearly US$48 billion comes from exports.

Moreover, a report by IT consultancy firm Forrester Research estimates that 3.3 million American jobs will be lost to outsourcing in the 15 years ending 2015. Already, half of the Indian IT- BPO industry's US$71.7 billion revenue comes from the US. According to Gartner, Indian BPO vendors will command 10 percent of the global market by this year end.

However, industry watchers assert that the Indian IT firms are also looking at pastures beyond the US for outsourcing revenue and have already started augmenting their presence in other countries. India's largest IT services provider Tata Consultancy Services (TCS), for instance, has more than 7,000 employees in Latin America and has also set up a delivery center in Cincinnati, US with a capacity of 1,000 workers.

According to the analyst firm Gartner, even if the specter of protectionism looms large over the Indian BPO industry, there is no need for despair. Obama's statement, they say, needs to be put into a political context. The embattled US President has been fighting a slowdown and job loss with unemployment touching a disquieting 10 per cent across the US.

 

[manglasiva]

if America starts to shut BPO's to INDIA..US buisness will loose its competitiveness...THATS A SIMPLE LOGIC

 

[yashraj]

i love this guy or may be girl, he or she utilise it's most of time behind searching anti indian articals on net.

Get life!!!!!!!!!!!!!

 

[praveen]

this guy doesn't even know how to post ,when to post ,what to post and on what ocassion to post.The articles god knows are how many days old.Now the recession is over in US and businessweek is know for its pro-china ,anti-india rhetoric

 

[Novice09]

this guy doesn't even know how to post ,when to post ,what to post and on what ocassion to post.The articles god knows are how many days old.Now the recession is over in US and businessweek is know for its pro-china ,anti-india rhetoric

gade murde ukhadna

 

[Justin Joseph]

India Could Be the Next Target for Angry Americans
Posted by: Steve Hamm on March 23

Reference:
India Could Be the Next Target for Angry Americans - BusinessWeek

Fear and loathing are on the rise in the United States. Right now the emotions are focused on AIG and Bernie Madoff—deserving targets for populist ire. But mob passions can’t be controlled, so there are huge risks to the United States and the world if the mob and its emotions start to rule. The greatest dangers are that the government won’t be able to rescue industries and institutions that should be rescued to keep the economy from totally tanking, and that protectionism will take hold both in the US and worldwide.

Today, I’m focusing on protectionism and its fallout. The New York Times published a Page 1 story this morning showing how protectionism is on the rise worldwide in response to global economic pressures. I picked up a piece of analysis over the weekend from economist and author Paul Collier’s book, The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It. He points out that the last period that the world went protectionist in a big way was the years 1914 to 1945. We can see what a raging success that was!

When the mob gets tired of pursuing AIG and Madoff, it will look for other targets to bay after. India is at risk. Inciter Lou Dobbs keeps pounding away at the foreigner and immigrant. Meanwhile, US Senators Richard Durbin and Chuck Grassley are crafting new legislation aimed at further tightening H1B and L1 visa rules. It’s expected to be submitted to Congress by April 3. Visa reform is legitimate, if there are abuses. But it becomes dangerous if the legislation ignites an angry broadbased backlash against India and offshoring.

Don’t get me wrong. I think a measured dose of protectionism can be useful at times of crisis or in response to abuses by other nations. It’s legit if it’s done rationally and in a carefully targeted way. It’s not okay if it erects major barriers to trade.

It could harm both nations if the US goes after India. For starters, where’s the harm or unfairness? Stats from the Bureau of Labor Statistics show US employment in the category of computer systems design and related services at 1.463 million in February. That’s down just 5,000 from a peak of 1.468 million last November. This is the category of employee that would be most affected by IT offshoring. Yet it’s just off an all-time high—and at a time when Wall Street has fired thousands of techies because of its own mistakes, not anything the Indian tech industry has done. I tried to get business process outsourcing-oriented job stats from the BLS, but they mix up BPO-type jobs with janitors and security guards, so it’s impossible to connect shifts there with offshoring.

Nasscom, the Indian software/service trade association, hired McKinsey & Co. during the last recession to do an analysis of the impact of Indian outsourcing on the US economy and jobs. The results showed a positive impact—more jobs created. The argument is that by making American companies more efficient, offshoring makes it possible for them to grow and hire additional employees. There’s logic to that, but, since the Indians hired McKinsey to do the study, the conclusions aren’t as credible as they would be if the study was independent.

Concerning the potential for US visa restrictions, he says: “Trade is a two-way street. We need to keep the movement of people open.”

That’s a key point. Trade isn’t just about merchandise. It’s about labor and capital, as well. And if American pundits and policymakers fail to realize that, trade between the US and India will be neither free no fair. That’s something people on both sides of the globe need to be concerned about

why are u spamming this decent forum with fake title?

why are u posting such craps in defense section???????

How it is related to the India's defense section ??????????????

 

[sivadreams]

Another one year old article LOL

 

[RobbieS]

Wow...an year old article...!

 

[kumar_V1.0]

Indian companies and captive units have been able to save many US enterprises from bankruptcy. It helped them whether the storm.

If you want to bash India no one can stop you but if you want to learn there is lots of resources available in public domain.

 

[AZADPAKISTAN2009]

Well alot of people are connected to the job anger situation people in US , people in Indai and no doubt may be even pakistan so the outsourcing issue is real and very real ....

There are massive job cuts and there is even talk of out right EXTREMELY high taxation on companies that take companies overseas ...

If India takes loans from banks , 300 billion dollar loan and then imagine that outsourcing is banned in US, can you imagine what would happen ???

Yes , unemployment rate will sky rockey in India and India would start to see its national debt sky rocket

With the national debt sky rocketing it won't be able to get oil for its industry and thus you will see great problems



Taking loans is no laughing matters to finance army goals , specially when US is considering banning outsourcing

200 Billion could baloon up to upwards of 400-900 billion dollar deficit , and we know that 30-40% of Indians live below what we call as normal living standards below middle class , which will cause more chaos in already .... hot hot , local dissent and problems in communities

I sincerely ask is it really worth it to start arms race ?

 

[kumar_V1.0]

Well alot of people are connected to the job anger situation people in US , people in Indai and no doubt may be even pakistan so the outsourcing issue is real and very real ....

There are massive job cuts and there is even talk of out right EXTREMELY high taxation on companies that take companies overseas ...

If India takes loans from banks , 300 billion dollar loan and then imagine that outsourcing is banned in US, can you imagine what would happen ???

Yes , unemployment rate will sky rockey in India and India would start to see its national debt sky rocket

With the national debt sky rocketing it won't be able to get oil for its industry and thus you will see great problems



Taking loans is no laughing matters to finance army goals , specially when US is considering banning outsourcing

200 Billion could baloon up to upwards of 400-900 billion dollar deficit , and we know that 30-40% of Indians live below what we call as normal living standards below middle class , which will cause more chaos in already .... hot hot , local dissent and problems in communities

I sincerely ask is it really worth it to start arms race ?

You pretend so or u dont use your brain at all and you dont forget to bring indian poverty at all. Fine if that makes you happier than thinking and doing smthing for pakistan.

employing workers at lower cost allows U.S. companies to be more efficient and productive, permitting them to create the same amount of goods with fewer resources. this lowers the price of the goods in the , strengthening U.S. companies and freeing workers for other tasks. The savings allows U.S. companies to stay afloat and expand in a highly competitive global market.

so this is just a form of free trade happening. India didnt snatch there job its dynamics of global economics which did.

Even after loosing tax benefits still many US companies find value in expanding in India than US.

 

[illuminatidinesh]

Well alot of people are connected to the job anger situation people in US , people in Indai and no doubt may be even pakistan so the outsourcing issue is real and very real ....

There are massive job cuts and there is even talk of out right EXTREMELY high taxation on companies that take companies overseas ...

If India takes loans from banks , 300 billion dollar loan and then imagine that outsourcing is banned in US, can you imagine what would happen ???

Yes , unemployment rate will sky rockey in India and India would start to see its national debt sky rocket

With the national debt sky rocketing it won't be able to get oil for its industry and thus you will see great problems



Taking loans is no laughing matters to finance army goals , specially when US is considering banning outsourcing

200 Billion could baloon up to upwards of 400-900 billion dollar deficit , and we know that 30-40% of Indians live below what we call as normal living standards below middle class , which will cause more chaos in already .... hot hot , local dissent and problems in communities

I sincerely ask is it really worth it to start arms race ?

 

[lhuang]

Well alot of people are connected to the job anger situation people in US , people in Indai and no doubt may be even pakistan so the outsourcing issue is real and very real ....

There are massive job cuts and there is even talk of out right EXTREMELY high taxation on companies that take companies overseas ...

If India takes loans from banks , 300 billion dollar loan and then imagine that outsourcing is banned in US, can you imagine what would happen ???

Yes , unemployment rate will sky rockey in India and India would start to see its national debt sky rocket

With the national debt sky rocketing it won't be able to get oil for its industry and thus you will see great problems



Taking loans is no laughing matters to finance army goals , specially when US is considering banning outsourcing

200 Billion could baloon up to upwards of 400-900 billion dollar deficit , and we know that 30-40% of Indians live below what we call as normal living standards below middle class , which will cause more chaos in already .... hot hot , local dissent and problems in communities

I sincerely ask is it really worth it to start arms race ?

I'm no American apologist, but that made absolutely no sense.

 

[chachachoudhary]

Well alot of people are connected to the job anger situation people in US , people in Indai and no doubt may be even pakistan so the outsourcing issue is real and very real ....

There are massive job cuts and there is even talk of out right EXTREMELY high taxation on companies that take companies overseas ...

If India takes loans from banks , 300 billion dollar loan and then imagine that outsourcing is banned in US, can you imagine what would happen ???

Yes , unemployment rate will sky rockey in India and India would start to see its national debt sky rocket

With the national debt sky rocketing it won't be able to get oil for its industry and thus you will see great problems



Taking loans is no laughing matters to finance army goals , specially when US is considering banning outsourcing

200 Billion could baloon up to upwards of 400-900 billion dollar deficit , and we know that 30-40% of Indians live below what we call as normal living standards below middle class , which will cause more chaos in already .... hot hot , local dissent and problems in communities

I sincerely ask is it really worth it to start arms race ?

Once again, an astoundingly noble gesture on your part. I am feeling like a Gandhi is reborn. Man I am in tears literally. Where were you all these years? Allow me to garland you