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Backlash: What scares US of A?

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CIOL Bureau
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NEW DELHI: Anti-outsourcing legislation, presidential candidates calling it treachery and the biggest scare of all times–job migration, what exactly is the US of A worried about? Perhaps it is the fear of the inevitable–in the times of global economy, true as it was for the manufacturing jobs–passing the work to cheap labor that can deliver on time and with the right quality. Experts say that what the US is trying to do is unnatural for true economical development.





Historically, the US government realized that agricultural jobs could well be made into manufacturing jobs, which later turned into more service jobs and finally letting them into the other destinations and generating better employment opportunities. With a strong lineage talking about getting cheap labor, what is it that is withholding federal government to curb this phenomenon?





Four reasons that are fueling the backlash fire are: 2004 being the election year, the job drain, the historical prejudice against India and other developing nations and the issue of patriotism.



With George Bush raising his tempo high on outsourcing and John Kerry calling it the fifth column commune, politically this subject could be used to tap the aching pulse. Then there is the major debate on the issue of using American products to boost the economy and closing all voids that are draining it out of the much-required economic boost.





The technology jobs fleeing to India are faster than ever and now with service jobs also leaving the country, the US has some serious thinking to do. Despite the fact that every dollar spent on the off shore destination yields $ 1.14 to the US. There is a mass migration of contact centers and BPOs to flourishing destinations like Navi Mumbai, Gurgaon and Bangalore.





According to the latest report by KPMG and Nascom on the Indian BPOs, the US will contribute a chunk to the outsourcing market in all segments–contact centers, manufacturing, R&D and other processes.





Curtailing the temporary work visas for immigrant programmers, such as the ever-controversial H1-B and its counterpart, the L-1 is one way out. H-1B allows companies to bring in skilled, college-educated workers in certain specialized occupations that include everything from IT and law to fashion modeling. The L-1 visa holder needs to be functioning in a managerial or executive capacity or have specialized knowledge of the company's products or business operations. L-1 visa holders can stay in the US up to seven years and six for H-1B holders.





But, even if such a legislation is passed, many observers expect the offshore trend to continue. And its long-term implications for the US IT industry have some people deeply concerned. As the bulk of technology work moves offshore, the deep, experiential knowledge and IPs might move offshore, which can be a prime concern for the US.



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The other reason is more emotional in nature. Americans have refuted the usage of Linux, saying that it is not made by Americans or not made in America. Absolutely similar sentiments are prevailing for the outsourcing backlash. Why get serviced by non-Americans? These sentiments too have been passed down historically, and with time and experience, as US realizes the pros of outsourcing, this too shall pass.



To sum it up, the waters are rough and first waters will flourish for the times to come.



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