Friday, October 15, 2010

India to take up outsourcing issue with Obama

Bangalore: During the visit of U.S. President Barack Obama here, India will raise concerns expressed by its IT industry over the U.S. curbs on outsourcing. There are some serious reservations being expressed about India's IT industry about outsourcing and the tightening of visa rules. These are the kind of issues that will be discussed said S.M. Krishna, Minister of External Affairs.

He was replying to a question on the areas on which India expected to see positive improvement during Obama's visit.

Krishna, however, stressed that the commonalities between India and the US are so strong that the problems in perception on some issues will not mar the relationship.

Obama is expected to arrive on his maiden visit to India on Nov.5. In view of India's sensitivity over the outsourcing issue, Obama will not go to Bangalore during his four-day visit to India.

U.S. recently hiked H-1B and L1 visa fees for foreign companies, particularly outsourcing giants from India, a controversial step that could cost India's IT industry $200 million a year.

In August this year, Ohio Governor Ted Strickland of the Democratic Party banned outsourcing, saying this undermined economic development and had unacceptable business consequences for his state.

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