PinoyBusiness.ORG – Home

The United States president elect Barack Obama keeps on being reluctant in terms of outsourcing industry even if America will loses billions of dollars.

More than 80% of the Business Process Outsourcing and call centers in India are under the management of the US companies, which is the main pillar of Indian outsourcing industry.

With over 37% growth rate over the past few years, BPO provide jobs for more than 700, 000. Now, Indian BPO employees begin to panic when Obama was elected. Obama made a controversial remark about the American outsourcing jobs in India during his campaign.

Indian BPO vendors solely rely on English-speaking geographies as their markets. While North America and the UK together account for about 87% of their export revenues. North America, particularly the US, accounts for roughly two-thirds of the market alone.

According to Tejas Doshi of Sushil Financial Consultants, “They don’t see any major shift in the business plan during Obama’s administration. The government has always worked in favor of business community. Most of all, Indian resources has always helped the US economy. And besides, if he wants to reduce the outsourcing from the US, he won’t be able to do it due to the fact that Indian resources is much more productive and cost effective thus, it will remain efficient in the business.”

Moreover, the significance of the Indian outsourcing industry to America is enormous. If the president elect wants to put a brake on the outsourcing, he won’t be able to do so because he knows how much revenue the US gets from the Indian IT, IteS and BPO sectors.

Hence, there is a huge impact on the US economy if Obama stil wants to pursue the anti-outsourcing law. All the global companies based in US will stand in his way. Even if he made promise to the people, the strong industrial lobby will surely do not want them to fulfill. It will be hard for Obama to ignore them.

Analysts feel that once Obama takes the presidential office formally in January, there might be some announcement related to outsourcing as he has promised during his election campaign which then could affect the IT industry in the short term and there might be some knee-jerk reaction in the stock market.

Related Video: