Has Obama overcome his aversion to outsourcing to India?

November 13, 2010

Now that President Obama has had a super successful Indian trip with business deals worth $ 10 billion under the belt that will create 50,000 jobs back home in America, will he stop flogging the outsourcing threat? No less a personage than the Prime Minister of India has publicly asserted that India is not in the business of stealing American jobs. If anything outsourcing to India has increased the competitiveness of American firms. And Bangalore is the name of an India city and not a process by which American get laid off-never mind the bad pun.

The mauling that Obama received in the mid term polls to the two houses has prompted a course correction from Obama, and one can safely say, that he has decided to move to a more centrist position. If there is any country in the world which has really cost the US job distress, it is China in manufacturing. Indian outsourcing strengthens American service economy, while Chinese manufacturing cripples American manufacturing.

Has Obama overcome his aversion to outsourcing to India
I think the US administration recognizes this truth and therefore seeks to partner India in building a bulwark against Chinese ambush tactics- in trade and perhaps militarily. It is against this backdrop that there is going to be holistic cooperation between Indian and the US. This is good news for outsourcing as the spotlight is off it. People and companies can now get on with it and continue to outsource to the best of their advantage and abilities.

America and India the world’s oldest and greatest democracies need neither to fear or demonize each other. There are a lot of synergies in working together in areas like green technology, defense, high end research and enhancing the security of the world. The fact that Obama believes in India being a partner and not a predator or a threat is borne out by his endorsement of a permanent seat in the UN security council.

Outsourcing in my opinion is going to grow exponentially in the emerging dispensation that emerges between India and the US. The two countries are strategic partners now and will outsource to each other routinely. So much for past rhetoric, Obama now says that the US and India are now to move ahead shoulder to shoulder and hails the Indo-US partnership as a very desirable thing indeed. Hopefully there will henceforth be a cessation of accusations and demonizing of the Indian outsourcing industry( and cities), when quite clearly India is clearly doing a world of good to the US economy and is indeed actually creating jobs by the tens of thousands.

If US benefits the Indian IT industry by outsourcing, the 200 million strong and growing Indian middle class market is a very plum market for US industry. So really it’s a symbiotic relationship that the two great countries share. So let it be that outsourcing be not made an issue that creates misconceptions about peoples and nations. It’s an integral part of globalization the wheels in a manner of speaking. So let it roll.


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