Monday, August 16, 2010

India Upset over Latest U.S Outsourcing Legislation

In the latest struggle over outsourcing, India has fired back at the U.S. Last week, U.S. senators unanimously passed a proposal to nearly double up the charges on work visas for Indian IT and BPO companies sending laborers to the U.S. Indian Trade Minister Anand Sharma has called the move “highly discriminatory” in a letter to his counterpart, U.S. Trade Representative Ron Kirk. This follows a bill introduced by U.S. Senator Charles Schumer last month that would increase fees to companies that use offshore call centers.

Sharma must recognize he’s not going to get compassion from Kirk or others in the Obama Administration. Even if they have been interested to assist fight this motion, they are not aiming to fight the Senate where there is unusual accord about the desire to sock it to Indian outsourcing companies by pricing them more for H-1B or L-1 visas. The major issue is not the new cost of the visa by itself; even with the supplementary $2,000-per-person cost, Indian companies aren’t about to quit transferring staff to the U.S. The bigger anxiety is where this can lead. The problem is that various other Western governments are expected to follow the American lead.

Nasscom, the Indian IT industry’s chief lobbyist, is likely to roll-out publicity campaigns to dispel those untruths and inform Westerners about what Indian IT workers do.

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