Friday, August 25, 2006

India’s Pot of Gold In Outsourcing Suffers and So Does U.S.

India, the first and the leading forerunner in the big time Outsourcing Industry among the Asian countries is expected to suffer it’s biggest market decline the years to come. This is due to the refusal of the country to open it’s market to foreign competition.

With the particular sanction initialized, it is expected to also affect the interests of U.S. companies to be able to explore the IT Indian workforce talents that they need.

Another country to suffer along with the U. S. is U.K. where some of the major companies there is currently tapping the advantages of outsourcing services in the Indian coasts.

In order for India to open up a fair consideration for access to their market the western countries including the U.S., it says should first cut off the big subsidies they offer to their farmers in exchange for perceived trade concessions.

This sanction is to avoid the upsurge of a possible trade war over manufactured and agricultural products which they fear could overtake the availability and competitiveness of their local products and affect the market saturation which could lead to a possible local outburst.

India’s NASSCOM, the U.S. Coalition of Services Industries with which EDS, IBM, and Microsoft are members, plus other concerned global services organizations have converged in expressing intentions and frustrations over the Doha process.

In their statement, they expressed regret for the WTO member’s lack of political will to form and formulate an agreement in agriculture and goods through the Doha process. They also expressed their opinion that if such agreement will not be forged as soon as possible, the countries involved might suffer a decline in service progress where the greatest share of economic outputs are derived for both the developed and the developing countries alike.

On the other hand pressures are growing each day because the Congress continues to resist and decline requests by both U.S. insourcing companies, unions and media critics to impose limits on offshore outsourcing. Many of the professionals are greatly affected along the way through this new trend in business outsourcing and many are legitimately loosing jobs and the IT industry is declining in terms of availability of local jobs in their own country.

The Indian fair trade is really the biggest issue here because it is the U.S. companies who benefit in the availability of cheap manpower resources through offshore outsourcing while the many professionals in the IT industry is suffering from inhouse deprivation and worst, it happens within their own country and there seem to be nothing they can do with the Congress out of their side. The big reserves of IT professionals are booming in terms of numbers while the available jobs are declining and this in the long run might lead to an increase in unemployment status for the local talents.


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