The three days during US President Barack Obama’s India visit were perhaps the most anxious moments for the information technology (IT) outsourcing industry, that thrives largely on exports. After emerging from one of the worst global slowdowns, it had seen the US taking tough protectionist measures. The volley of rhetoric occasionally thrown by US politicians added to their woes. Som Mittal, president of industry body Nasscom, shares his thoughts with Bibhu Ranjan Mishra on the outcome of the US president’s visit to India and the benefits the IT industry is expecting from of it. Edited excerpts:
Is the IT industry happy with the outcome of President Obama's visit to India?
We must be clear as to why this visit was important for us. It is not because of the number of deals that were signed. The purpose of the visit is best manifested by the presence of 200 CEOs who accompanied President Obama. They interacted with our businesses and expressed themselves. Now, they are going back to talk about what they saw in India as a market and as a destination, and also how they could leverage this. The biggest outcome we are expecting out of this visit is the change in perspective of US policy makers towards India. It is now to be seen how all these are getting translated into real action and a change in attitude by both sides.
What indications did the IT industry get from the US mission?
We (IT companies) were very well represented at the CEO forum. We have got the right statements. The statement is that the old stereotypes need to be changed. We have to change the stereotype that India is a call centre country. The focus of Indian companies on product space is also an attempt to change that stereotype.
Has Obama’s visit allayed some of the fears of the IT industry?
Yes … but there is more work to do. Because it’s not about thinking that everything will change with just one visit. There is a lot to do. I think there is a much better realisation that we (Indian companies) are adding value. There is a better realisation that some of the mix (of IT offerings) that exists has to be changed. And, also a better realisation that this is a two-way street and India needs to open up, and so do they.
Have you sought any assurance in terms of a more inclusive policy from the US?
I don’t need to say that. The president said that and our prime minister echoed his views. I think this was part of the government discussions. They have both said protectionism was not the way forward and in fact the open market is going to lead towards this. You heard the prime minister saying that we are not stealing jobs but actually adding value to US corporations. Even the chairman of GE, the chairman of United Technologies, have said how they were able to do their design works here and shorten the time to market.
Was there any specific talk on the US putting a ban on outsourcing of government projects?
Let’s not discuss individual cases. As it is, we don’t do much for the public sector in the US. For us, the concern was more the trend, the rhetoric, the direction it was going. Much of these discussions were between the two governments and we are very happy the government of India, right from Anand Sharma to Pranab Mukherjee, did cover this.
Is the US government committed to making some relaxations on the visa front?
Even today there are 85,000 visas that are under the quota. And even today, less than 50,000 have been used and we are well into the eighth month of the year. So, the cap on the visas is not an issue. Last year, Indian IT companies had taken 6,000 visas. The issue is about the excess scrutiny. We have addressed this issue with the (US) Embassy. We should distinguish between the policy and operating issues. The policy issue is really regarding the Border Security Bill. The current issues on visas are more on operational areas and we will deal with that at the consulate level.
