Infosys & Nasscom Adopt 'Wait and Watch' Policy

by CXOtoday Staff    Feb 26, 2009

President Obama’s statement yesterday has sent ripples of unease in the Indian IT industry. Indian IT players are hopeful that the US government will not get carried away by its desire to increase jobs for their compatriots.

An Infosys (INFOSYSTCH) spokesperson said that they were confident that the US would not take any measures which might hurt its global competitiveness. "Outsourcing has enhanced the competitiveness of US corporations and has created more jobs within the US economy. The US is a very open economy and a strong proponent of free trade globally," he said.

Nasscom has also said that this is not a time for protectionism but for global collaboration, if the world is to come out of this economic downturn quickly. "We hope that all other countries would support this and continue to be proponents of free trade. While supporting international trade, countries (regions, states) have been promoting local investment through tax incentives for job creation," said Nasscom in a statement.

Nasscom said outsourcing has enabled US companies get the technology and innovation edge and access best resources globally. "Global sourcing has helped companies gain the vital competitive edge - time to market, transformation of businesses, integration of processes, reduce costs and enhance efficiency - all of which are key drivers for revival of economic activity," said Nasscom in  a statement to the press.

"The economic downturn has created turmoil worldwide impacting businesses and job creation. In the US, unemployment is largely concentrated in the manufacturing, retail, and construction sector. The technology sector is a part of the global value chain and while affected by the downturn, is still expected to grow as per reports by leading analysts and unemployment in this sector continues to be the lowest," the press note said.