New Delhi: Wipro Technologies has joined the Indian IT industry in criticising the United States for trying to ban outsourcing. Wipro said that protectionism was not good for trade relations while reacting to US President Barack Obama's anti-outsourcing statement and Ohio's ban on outsourcing of government jobs.
"Outsourcing model is undergoing paradigm shift. India has a very strong case at WTO and protectionism is not sustainable," said Wipro just a day after two Union ministers reacted strongly to Obama's statements and US policies to protect American jobs.
However, the US has tried to play down the damage that Ohio's outsourcing ban and Obama's anti-outsourcing statements may have on Indian IT industry. US Ambassador to India Timothy Roemer said that there was no cause for concern for Indian companies.
"I would refer you to the statements by Infosys and others who have recently said about the Ohio action yesterday that they had very little, if any, impact on US-Indian business," Roemer said on Friday in New Delhi.
Union Minister of Road Transport and Highways Kamal Nath and Union Commerce and Industry Minister Anand Sharma had on Thursday said that a ban on outsourcing jobs would not help the US.
"US is not doing any favour by outsourcing work. This is an economic issue," said Nath.
Sharma said that India would raise the issue with the US government and convey its disappointment over the ban imposed by Ohio on offshore outsourcing at the high-level bilateral Trade Policy Forum (TPF) meeting in Washington later in September.
Last month, Ohio Governor Ted Strickland of Democratic Party banned outsourcing arguing that this undermines economic development and has unacceptable business consequences for his state.