'BPO backlash will subside after US poll'

The National Association of Software and Services Companies said on Friday that the outsourcing backlash in the US was not a matter of concern for the Indian IT sector and hoped that the anti-outsourcing campaign would substantially reduce after elections in the US.

"From the business point of view, this is not of any concern. But in terms of mood being reflected in the United States, we are not very happy. We feel that there is need for US to recognise that offshoring is bringing value to US economy and corporates," Nasscom President Kiran Karnik told newspersons on sidelines of a conference in New Delhi.

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Asked about the spate of bills being introduced in US, Karnik said, "It is a political game that will go on. We do not see that stopping or coming to an end. In the backdrop of the forthcoming presidential elections the job loss is a major issue, but it is going to decrease very considerably after the elections."

"As US economy picks up as well as the jobs opportunity grows, it will become a marginal issue," he said.

He said though the industry anticipated that many laws would be introduced, Karnik said, "We will see how many (Bills) are actually passed. Except that first bill at the federal level, not a single bill has been passed."

In the first Federal law against outsourcing, the US Senate in January passed a law barring doling out sub-contracts to India and other countries by American companies to cut their costs.