Clinton’s Speech Supports Offshore Outsourcing to India
In a speech before the U.S. – India Business Council and numerous representatives from offshore outsourcing companies, U.S. Secretary of State Hillary Clinton called for a “dramatic expansion” in relations with India. During her presentation, Clinton outlined her plans for a new relationship with India.
According to Clinton, the U.S. – India relationship needs an “upgrade,” which she termed “U.S. – India 3.0.” Her speech seemed to indirectly support the arguments made by India’s IT outsourcers that visa restrictions fall under the category of protectionism. Clinton did not address the argument regarding offshore outsourcing and lost jobs in the United States. Instead, she said that any differences in perspectives regarding the relationship between U.S. and India could be worked through by focusing on shared objectives and concrete results.
Legislation proposed by U.S. Senators Chuck Grassley (R-Iowa) and Dick Durbin (D-Ill.) seeks to establish stricter prevailing wage standards that could increase salaries for H-1B workers and impose limits on the number of visa workers to 50 percent of a company’s total workforce. This bill has been strongly protested by the Indian IT community and Indian government. Wipro Chairman Azim Premji, said that there is extreme concern among the India IT industry regarding the Grassley-Durbin bill.
The basic argument against the Grassley-Durbin bill is that global sourcing tends to lower costs for U.S. companies. By lowering costs through offshore IT outsourcing, companies can expand in other areas and markets outside of the United States.
India’s ambassador to the United States, Meera Shankar, said that India’s IT talent has enabled U.S. companies to become more competitive globally, while at the same time creating jobs and profits that can circulate through the economy.
There are many offshore outsourcing benefits available for U.S. based companies. If your company is looking to outsource IT development, you should first speak with an outsourcing consultant from A&E Consulting at 661-200-3612.
Tags: global sourcing, offshore it outsourcing, offshore outsourcing, outsourcing consultant