While many countries all over the world have begun preparations to think about the new outsourcing policies of the Obama camp, the Indian software industry has also been intensely debating the course of business relationship between India and the US in the next four years. There is largely one phase of opinion in India observed in recent dreary financial environment, that is highly optimistic and is of the view that Indo-US IT relations have matured enough not to be overturned by political changes in the US from Republican rule to Democratic Administration. It seeks to explain that the forward movements in bilateral relations spanning defense and security, economic, people-to-people contacts, cultural relations and particularly the emerging strategic partnership during the eight-long-years of Bush Administration had bipartisan support. Thus, there is not adequate reason to believe that Obama Administration would do anything that could derail the onward march of Indo-US IT relations.

In addition to this, the growing domestic demand for IT services, India has been witnessing an outsourcing boom. The past couple of years saw a number of multi-million dollars outsourcing deals by Indian companies. Most importantly it is also sure that in the next few months India will get a better assessment of the impact on sectors and it will certainly strengthen Indian entire IT sector. I would rather say this is an opportunity for Indian IT service providers who have been mostly focused on the US market. They can use opportunities in the domestic market to offset for losses from US slowdown. Indian IT companies have run global operations and can manage multicultural Management teams and large pools of technical manpower.

According to Forbes magazine “Jobs that are low value-added and easily automatable should and will disappear over the next decade in Indian Software Industry.” When we compare our industry with world business then we can easily see that we are still the world’s back office. The Indian Call Center, Medical Transcripts BPO sector is an inbuilt part of the global ecosystem and is likely to be affected in the short-term, as clients become cautious in their discretion disbursal and decision making cycles get broadened. However, it is to think that the economic recovery in Indian software market can be done through focus on enhancing competitiveness, and use of technology will be critical to this phase. The India value proposition is today well established and Indian companies will look to partner with their customers as the global financial sector.

Furthermore, if the US wants to restrict Software outsourcing then they have to allow more H1B visa (temporary work visa) as the USA don’t have enough technical staff so they need to allow more H1B visas. Although Obama has made a stern decision for outsourcing but there is no need to be stirred as it may impact less to Indian IT market. Indian business leaders can cheer up concerns for possible moves to outsourcing of businesses of which India has been among the major beneficiaries.