US anti-outsourcing is aimed at manufacturing in China and not IT in India

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Barack Obama won his second term in office and while most non Americans and probably Americans breathed a sigh of relief. But suppliers in low cost nations that provide products and services to the US might be a little afraid of his plans for reducing outsourcing/offshoring.

NASSCOM, the organisation that represents Indian IT services firms, was quick to reassure members that it is not the Indian IT sector that is being targeted but the manufacturing sector in China.

According to an article in the Economic Times in India NASSCOM President Som Mittal said:  "Every time there is anti-outsourcing topic, we always take it as it's for our industry (Indian IT services industry)." 

Actually, it's targeted at manufacturing sector, he added. Many of the jobs (in the manufacturing sector in the US) have moved (to China)", he said. He also said the anti-outsourcing rhetoric is different from reality in the US.

He said that there is an IT skills shortage in the US and IT will be critical if the US economy is to recover.

It reminds me of the UK election when the Tories were talking about reducing the number of offshore workers, from low cost regions, entering the UK. We ended up with an immigration cap, but one that didn't really impact the UK IT sector. This was because offshore companies use the Intra Company Transfer (ICT) route to bring IT staff in and ICTs were not touched by the cap. There are also claims that there is an IT skills shortage on the UK

So if you are an American or British IT worker what do you think about the skills shortage?

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About this Entry

This page contains a single entry by Karl Flinders published on November 7, 2012 2:43 PM.

What does aligning business with technology actually mean? was the previous entry in this blog.

Capgemini will be a mainly offshore based supplier by 2015 is the next entry in this blog.

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