Click to play videoNew Delhi: The question of outsourcing has been a constant irritant between Indo-US economic ties.
The issue came up for discussion when Prime Minister Manmohan Singh met US President Barack Obama at Hyderabad House in New Delhi. Following the meeting Singh said, "India is not in the habit of stealing jobs from America."
Singh drove home a clear message that outsourcing was a solution to US economic worries. Obama admitting that synergies between US and Indian companies were creating jobs both sides of the globe.
"US companies are creating jobs with tech in US and Indian businesses will take those technologies to expand growth and jobs in India and US," said Obama.
So what made Obama change his heart on India's $50 billion outsourcing industry?
For one, the IT lobby has worked hard to ensure the government paints outsourcing in a better picture. But more importantly, the big ticket deals worth $ 10 billion and about 54,000 jobs in the US has cushioned the blow of outsourcing. India Inc is mollified, but only for the moment it seems.
"Now that in public they have accepted the fact that is is stereo type that exist, Obama himself said that he is going to work on changing those perception. Its is a positive development. But we will have to see how it translates on the ground," said Nasscom President Som Mittal.
So will India and the US leave the outsourcing bogey and concentrate on gains in other sectors? It is a $ 10 billion question.
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