Obama to face India on outsourcing

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The Indian government plans to discuss its outsourcing concerns with the US president, Barack Obama, during his first official visit to India next month. Indian External Affairs Minister SM Krishna said the government would convey to Obama the IT industry’s anger and disappointment following US restrictions on outsourcing.

ObamaFlagAlexWongIn early August, the US president signed into law the Border Security Bill, which has resulted in steep increases in the cost of H-1B and L1 visas that are used by foreign companies and individuals to maintain temporary employment in specialist occupations in the US. These increases have been perceived by India’s outsourcing providers as protectionist and unfair to the industry.

“There are some serious reservations being expressed about India’s IT industry about outsourcing and the tightening of visa rules,” said Krishna. “These are the kind of issues that will be discussed”.

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