Nov

6

It’s official. Democrat Barack Obama earns a landslide victory over Republican presidential candidate John McCain to become the 44th President of the United States and also the 1st African-American to achieve the position.

This event is significant because it means a change for the world’s most powerful, if not most influential, nation.

More significant for the companies and destinations for outsourcing.

You know, unlike John McCain, I will stop giving tax breaks to companies that ship jobs overseas, and I will start giving them to companies that create good jobs right here in America. I’ll eliminate capital gains taxes for the small businesses and start-ups that will create the high-wage, high-tech jobs of tomorrow.

- Barack Obama on accepting the Democratic Party Presidential nomination last August 2008.

From the get go of his national campaign for the Presidency, Barack Obama has taken a stance against outsourcing. Don’t take my word for it, take his own words here.

However, views are mixed on what Barack Obama plans on outsourcing. Some industry insiders are even positive enough to project that Obama’s presidency could be good for outsourcing.

In India, where a majority of its companies that drive its economy rely on the US outsourcing various manufacturing and business office processes, there are some grave concerns however…

Once Obama is in office, he will realize that it is an interconnected world, and countries have to work together.

- P. Chidambaram, India’s Finance Minister.

The National Association of Software and Services Companies (NASSCOM) congratulate Barack Obama on his presidential victory.

With the global economy stressed, it is more important than ever that India and the US find ways to partner together to spur innovation, foster economic growth, develop an educated and skilled workforce and create jobs for the modern global marketplace.

- NASSCOM, Press Statement

The NASSCOM President hopes that Obama can steer the US economy back on its feet, adding:

It’s most important that the US economy gets back on track since it has such a large importance for us

-Som Mittal, NASSCOM President

The Philippines, a stalwart outsourcing destination which plans to surpass even India, has its eyes and ears on Obama’s economic actions and their effect on the business ties between the two long time allies. Hope is buoyed from some words of confidence of the US Embassy.

There’s a real discussion on the effect that the current economy has on outsourcing, and there’s two ways of looking at that. Some can think in terms of keeping jobs in the United States, but on the other hand, companies generally find that it’s more efficient to be outsourcing to different companies around the world.

My expectation would be that there would be no reduction in outsourcing, which it would continue to be a robust part of the global economy.

-US Embassy Deputy Chief of Mission, Paul Jones

On a more personal note, I don’ think that the new President is totally averse to outsourcing, particularly if it is the sort that brings more jobs and revenue to the United States. I wonder if he’s going to offer tax breaks on companies like Infosys and Wipro which are already expanding their operations in some states.

If Obama can make America better in business and economy, that is still beneficial to outsourcing since outsourcing is business.

Outsourcing Solutions, Inc. – your outsourcing partner!

 

References:

  1. “Outsourcing to continue.” 6 November 2008. Sun.Star Cebu. Accessed 6 November 2008. Link here
  2. Kundu, Subhankar. “Outsourcing industry has nothing to fear from Obama.” 5 November 2008. IT Examiner. Accessed 6 November 2008. Link here
  3. Sheth, Niraj. “India’s Outsourcing Industry Is Hesitant to Embrace Obama.” 5 November 2008. Wall Street Journal. Accessed 6 November 2008. Link here

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