Time Is Right For Indian IT Industry To Diversify Markets To Include Africa, Asia & Europe
September 17, 2010
According to media reports, the Indian Government has said that it is time for Indian IT firms to diversify their markets to include more of Africa, Asia, and Europe.
The comments come against the backdrop of rising anti-outsourcing sentiment in the U.S., which recently spiked the fees for LI an H1 visas. In addition, Ohio State has placed a ban on outsourcing to companies abroad. Putting together all of these measures, the Indian IT industry will suffer losses amounting to $50 billion. So far, the Indian IT market has been largely dependent on U.S. firms for revenue.
Sachin Pilot, the Minister for Communications and IT told reporters that IT firms need to diversity India’s export locations so that there is more of a balance with respect to export destinations like Europe, Asia and Africa.
The Ohio ban was a blow to India’s outsourcing firms, with Anand Sharma, the Commerce Minister saying that this was not a welcome move. Sharma said that India’s IT firms have made a significant contribution to the global business community, which includes the U.S. He added that Indian firms have created jobs despite the rise in job losses in the wake of a recession.
Sharma continued to say that the global trade movement of services is necessary for businesses to thrive everywhere and that he believes that these challenges posed by the U.S. would make Indian IT firms more robust to attract more outsourcing to India .
Sharma also highlighted that the Indian IT industry has generated more than 250,000 jobs in the U.S. within the last three years, reports the Economic Times.