The day when US President Barack Obama sealed the US Border Security Bill, Gururaj 'Desh' Deshpande who has recently named as the co-chairman of Obama's National Advisory Council on Innovation and Entrepreneurship was in India. 'Desh,' a serial entrepreneur who is also chairman of telecom equipment maker Tejas Networks, was in Bangalore to attend the 10th year completion of telecom equipment maker Tejas Networks.
In his new role, Desh who was born in Hubli (Karnataka), will help his other two co-chairs and 23 members in devising strategies and policies to foster entrepreneurship and creates jobs thus driving economic growth in the US. At a time when sentiments in India is running high over the US Law which also proposes hiking the H-1B and L-1 visa fees to fund it's border security, Desh discusses with Bibhu Ranjan Mishra on what is US government's broader strategy and what the council is doing to mitigate the unemployment crisis that in the US. Here are some excerpts.
What we are hearing and seeing in the US is driven by a sense of patriotism or something else?
It's just because of the unemployment rate which is quite high, and when the unemployment is high, usually you have these kinds of reactions. It's a cycle. I think a lot of these issues, between countries, come up sometimes as a reaction to elections. But the question is how thoughtful are these (reactions)?
Is not an insult to Indian IT industry by comparing it with 'chop shops'?
It's just happening as the US is undergoing through a financial crisis. There is a lot of unemployment and lack of opportunities. If tomorrow, the unemployment rate comes down, we won't see any such tension. If someone who does not have a job for a year or two, he is in trouble. So there is a sense of frustration.
Won't it affect the future of outsourcing, especially in IT space?
I think the world still has a lot of works to do. And therefore, there will be opportunities for everybody. But what happens is when you go through, you will have a lot of these ups and downs. But there are still a lot of countries that will jump into the game. In that case, when somebody else is taking something away from India, India will still be able fill the gap. But that does not mean that India will loose all the jobs.
But how feasible it is to suddenly reduce dependancy on a geography which contributes more than 60% of revenue?
It does not happen like that. Because it's not like they (US companies) are doing something out of charity. All the IT companies here (in India) are actually doing things that are making those (US) companies more productive, and adding good value. So I think in business, people do business because it adds value, not out of charity.
Is the US government forcing local firms to do a lot of rural-shoring inside the country, than offshoring it?
Rural-shoring is happening, but these are still small numbers. Because the standard of living in different parts the US is not that different when compared to India or Indian tier II cities. If they go to some other countries apart from India, even they may get it done at a much cheaper price. Because here (in India), the high-tech guys are now making a lot of money. The world still has a lot of opportunities for everybody. And it's a question of whether people get organised and become capable enough to participate in that game.
What would be your suggestions to the Indian IT industry at this point of time?
Indian companies have done a very good job -- they are addressing the local market and they are also diversifying to other geographies. I think as one diversifies into newer geographies with his products and services, this covers him from the ups and downs.
But Europe is also in crisis?
Nobody is going to be immune to that (crisis).
What is going to be the role of the Council in terms of job creation etc?
The role of these senior people who are part of the council including me, will be to advise the government on the policies and how it can really leverage the innovation and entrepreneurship to boost the economy. We are just starting and our first meeting is expected on 2nd of September. After that, we will look at the national assets and find out how can we deploy these assets to create more jobs and employment in the country.
