Bush states that Protectionism would not be able to oppose Offshore Outsourcing

U.S. President George W. Bush announced on 3rd March and ruled out protectionist measures by the United States to oppose the loss of jobs and employment in the country because of the sending the work overseas. Bush states that protectionism would not be able to oppose Offshore Outsourcing in any ways. He also said that they like competitions and they don’t have any fear regarding the heavy competition in the market. His statements were to the students at a business school in Hyderabad, India. He also said that it is true that people are losing jobs as a result of globalization and Offshore Development. He also confessed that it is painful for the people who lose jobs because of Offshore Outsourcing, but protectionism would not be the proper solution or way for the United State government to respond to this scenario.

Offshore Outsoutcing services

Globalization offers great opportunities to the country like India where the 300 million strong middle class populations offers a classic prospects for American farmers, entrepreneurs and small businesses with lots of good services with lower labor rate. Country has lots of opportunities and capabilities to offer the Offshore Outsourcing services not to U.S. only but to across the globe. A large number of United States Information Technology organizations, including Microsoft, Oracle, HP and IBM, all have established Offshore Software Development center, support, and Business Process Outsourcing (BPO) functions in India.

Country’s software and services exports amount are expected to increase by 32% to $23.4 billion in the fiscal year to March 31, according to informations declared by NASSCOM. India is on track to accomplish $60 billion in exports by the year 2010, estimated by NASSCOM. India is really doing well and demanded by many countries for IT services. America is also one of the countries that outsources heavily to India in IT field. Facts and figures suggest that around 70 per cent of the country's software and services are exported to the United States.

Many trade organizations in the Unite States have been protesting against the loss of employments and jobs in the country, and this was an important aspect of the movement by Democratic Party Senator for the country’s presidential election in the year 2004. The Washington Alliance of Technology Workers, objects to Offshore Outsourcing to India as well as to encourage in H-1B visas for employees from India entering to the United States. This is because Indian workers are ready to provide the qualitative services with almost 5 times less charges. This is one of the main reasons behind the objections to Offshore Outsourcing for the Indian IT workforce to enter into the United States.

In a press conference in Delhi, American president George W. Bush also stated that he would like more H-1B visas to be issued to Indian developers, engineers, scientists, and other talents to serve American companies. At present H-1B visa limit of 65,000 a year has verified insufficient for India's Offshore Outsourcing industry.