At a time when US President Barack Obamas statements on curbing tax breaks for outsourcing companies in the US rang alarm bells in the Indian IT sector,Indian IT representative body National Association of Software and Service Companies (Nasscom) today said it does not expect the recent protectionist measures taken by the US government to impact the Indian IT-BPO industry.
After having met with politicians and experts,a delegation of apex industry body Nasscom today said in a statement that removal of tax breaks for US companies that create jobs offshore would not impact the Indian industry. The delegation consists of president Som Mittal,chairman Ganesh Natarajan and vice-president Ameet Nivsarkar. We are confident the US will consider all factors as they have in the stimulus bill and other proposed initiatives for reviving the economy and employment, the statement said.
The US has imposed restrictions on entities receiving taxpayers money from applying for H-1B visas for highly skilled workers,if such immigrants replace American workers. According to media reports,Bank of America has become the first US bank to withdraw job offers made to MBA students graduating from the US business schools this summer,citing conditions laid out in its bail-out deal as the reason. With the economic meltdown,there are significant concerns regarding the growing unemployment. Nasscom said there is an increase in pressure in the US from local constituents to protect jobs. Measures such as closing borders for trade and promoting protectionism presents a serious risk to the world economy today. Nothing should be done which seem attractive and populist in the short term but will have a long term negative impact, said the statement.