Friday, August 13, 2010

Of Chop Shops, Visa Fees & Outsourcing

It seems like the first clarion call of a nation united in its opposition to restrict and curb the free will of its capitalists who have for long gone ahead with their businesses with profit as their only guiding force. Come hail, storm, or sunshine, (read Russia, Iraq, Afghanistan and the scores of other countries) the American capitalist has relentlessly marched on in his pursuit of larger playing fields and greener pastures. His actions have governed the fate of the world. He was lauded and his innovation was hailed as the benchmark of a society based on individual gain, free will and profit motive. So then why now, when in his quest of lowering his costs (especially in the storm of a severe downturn) and increasing his profit margins are his own supporters becoming his biggest detractors? Why is the American politician now going hammer and tongs after an industry that was, in the first place, created for and by his own brother? Is this an over-reaction? Or misplaced zeal? Or an attempt to distract public attention from increasing unemployment statistics that are negatively impacting Obama’s popularity? Are they pointing fingers at us so that none can see their own deficiencies?

As strange/impossible as it is to have a full House in Parliament in India, getting all 100 Senators to vote unanimously on a bill is near miraculous. On Thursday, the Senate unanimously passed a bill sponsored by New York’s Chuck Schumer to increase visa fees on companies that send workers to the U.S. if more than half of their America-based employees use work visas. To add insult to injury, the Senator also likened India’s blue-chip IT services company – Infosys to a ‘Chop shop’ or in common parlance crooks who specialize in taking apart stolen cars. Of course, there has been the necessary indignation shown by our industry experts as well as the NASSCOM which came out with an official statement deriding the comment. Can we now be certain that President Obama is not exactly a supporter of the Indian outsourcing industry? Can we also assume that this could be the start of a backlash that could only get worse if the American unemployment scenario continues to worsen? I certainly hope not.

While the increase in visa fees would hardly affect companies like Infosys, Wipro and their ilk, it is indeed sad to witness this garbed jingoism from a country that had come to define free enterprise and individual liberty as cornerstones of its interpretation of democracy. In an increasingly globalized world, are we not all tied together, albeit loosely, in a bunch? Are Boeing, GM, Ford, Bank of America, and a host of other companies not setting up their businesses in India and deriving significant profits? Why the double standards then Mr. President? Why brow beat about saving American jobs by restricting outsourcing operations? What percentage of American jobs have been outsourced to India? Is it large enough to warrant such a stand? And should we Indians even react to this verbal diatribe that Chuck Schumer has indulged in? Am hoping most of you say no, read this blog, and go back to working in the LPO/BPO/KPO/ITeS company with a smile on your face thinking that we are definitely making a difference somewhere—good or bad, small or big!

PARTING Thoughts: Outsourcing is the need of the hour and this convoluted debate can go on endlessly with both sides hurling accusations or there can be a consensus on the necessity for both sides to accept the need of the other and ride the wave together.

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