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ADVANTAGES TO OFFSHORING IN INDIA

Offshoring in India- Obama's stance:

Last: August 29, 2008

NEW DELHI: Unfazed by US Presidential candidate Barack Obama's remarks on offshoring, industry body on Friday said Indian software exports are unlikely to be affected by this as offshoring is a key economic decision for US companies.

"We are not sure whether he had meant companies should offshore their business to India in the software sector or the manufacturing sector. But I don't think the software exports will be affected or slow down...

Such decisions (offshoring to India) are determined by economic considerations by (US) companies who want to remain competitive by offshoring their business to India. Offshoring is one of those ways," Nasscom President Som Mittal told PTI when asked if Obama's comment is targeted at software services exports from countries like India.

India's software exports led by companies like TCS, Infosys and Wipro draw over 70 per cent of revenue from the US market. The software and services exports segment grew by 29 per cent to register revenues of $40.4 billion in 2007-08, up from $31.4 billion in 2006-07.

 

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