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India in talks with US for clarity on outsourcing...!
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India in talks with US for clarity on outsourcing...!
Kris Gopalakrishnan, CEO & Managing Director of Infosys Technologies, on Friday said that the US President, Barrak Obama’s announcement on curtailing outsourcing to other countries needed clarification on the exact implications.
Reacting to Obama’s recent address to the legislators stating that the US companies shipping jobs would lose tax benefits, Gopalakrishnan said, “ We will wait and see”.
He said that the Indian Government was in talks with its US counterpart while industry associations such as the National Association of Software and Services Companies, Confederation of Indian Industry and the Federation of Indian Chambers of Commerce and Industry would discuss with the US Government and seek clarifications.
Talking to reporters on the sidelines of the CII Karnataka’s annual day meeting here, Gopalakrishnan said Infosys expects outsourcing of information technology services to recover sometime in 2010.
The feedback from the clients was that the IT budgets would be down this year, in some cases significantly, he added. “Even where IT budgets are finalised, there is going to be a delay in spending as clients wait and watch the evolving global economic situation,” he added.
Later, addressing the CII annual meeting Gopalakrishnan said data released by organisations such as the World Bank indicated that for very $1 spent on outsourcing, an American company would earn $1.20 to 1.30 and this could easily go to create domestic jobs.
Outsourcing from India was because of the highly skilled persons available here and not just because of the cost factor, he said.
Reacting to Obama’s recent address to the legislators stating that the US companies shipping jobs would lose tax benefits, Gopalakrishnan said, “ We will wait and see”.
He said that the Indian Government was in talks with its US counterpart while industry associations such as the National Association of Software and Services Companies, Confederation of Indian Industry and the Federation of Indian Chambers of Commerce and Industry would discuss with the US Government and seek clarifications.
Talking to reporters on the sidelines of the CII Karnataka’s annual day meeting here, Gopalakrishnan said Infosys expects outsourcing of information technology services to recover sometime in 2010.
The feedback from the clients was that the IT budgets would be down this year, in some cases significantly, he added. “Even where IT budgets are finalised, there is going to be a delay in spending as clients wait and watch the evolving global economic situation,” he added.
Later, addressing the CII annual meeting Gopalakrishnan said data released by organisations such as the World Bank indicated that for very $1 spent on outsourcing, an American company would earn $1.20 to 1.30 and this could easily go to create domestic jobs.
Outsourcing from India was because of the highly skilled persons available here and not just because of the cost factor, he said.
