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US' Anti-outsourcing Move to Impact Small Indian IT Firms

by: Karen Cayamanda

Monday, September 20, 2010 | Outsourcing News |

While experts in the Indian outsourcing industry believe that the recent anti-outsourcing move of Ohio will not have an immediate impact, they think that this will be felt by small IT companies. According to Ameet Nivsarkar, Nasscom Vice President, private companies still see India as their location of choice for outsourcing, though the recent move to ban transfer of government projects offshore, following an increase in fees for H- 1B and L1 visas, is "certainly disturbing".

"This is business is not driven by rhetoric but hardcore commonsense. US companies outsource because it is profitable and not just out of some political compulsions. So, large contracts will not be impacted. However, there may be certain disruption for small contracts and companies," a senior official of global networking giant Cisco said.

With this anti-outsourcing trend from the US, Indian IT firms are now tapping markets in Europe, Latin America, and Middle East.


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