Discouraging outsourcing to hurt US

Amit Mitra, secretary general, FICCI, said Obama, perhaps, would realise the proposed move to discourage outsourcing was more harmful for American companies.

Nasscom chairman Ganesh Natarajan was optimistic. "It [Obama's proposal] is a statement of directional intent and all depends on the bill that is passed by Congress. But as of now
there is no cause for great concern," he told DNA from the United States.

TV Mohandas Pai, board member and director-human resources at Infosys Technologies, said IT outsourcing was the least of Obama's worries. "Over 600,00 US jobs are being lost every month and reviving the manufacturing sector there is the target," he said.

If offshoring was really the target, Obama has got his math wrong, said an IT company chief.
There was a huge cost advantage for the US companies offshoring to India which outweighed the loss of tax incentives, he said.

According to Kiran Karnik, former Nasscom president and current chairman of Satyam Computer, offshoring will continue because of operational efficiencies and not just the cost advantages

source: DNA