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Outsourcing IT services to India not an issue in US presidential election anymore |
After a volley of words exchanged between Mitt Romney and Barack Obama over India’s call centers, the focus has now shifted to China. And the reason for this shift is that more Americans have lost jobs in the manufacturing sector, than in services sector in the last few years.
Websites like mericanManufacturing.org state that between 2001 and 2011, 2.7 million U.S. jobs of manufacturing sector were lost or displaced. The wages have also gone down due to competition with the cheap Chinese labor. No state could escape unemployment caused due to China’s predatory pricing and huge manufacturing infrastructure. California has recorded maximum job losses with more than 475,000 unemployed. New York also suffered as nearly 159,000 people were left out of work.
Unlike the Chinese, Indian Call Center and Call Center Outsourcing industry is working consciously to generate employment in the US. NASSCOM, the apex body of IT and ITES industry representatives states that in the last five years they have doubled the number of permanent employees from 58,000 in 2005-2006 to 107,000 in 2010-11 in their US based offices. 75% of staff in these offices is US citizen. The IT industry provides direct employment to about 2.8 million people and indirectly employs another 8.9 million people.
The taxes paid by Indian companies to US government have also doubled in the last five years. Therefore the US populace and politicians has understood that business relationship with India is a symbiotic one. |
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