24th May 2007

Firing Back At USA / Europe

posted in Outsourcing News and Top Outsourcing deals, New Outsourcing Destinations |

As US elections draw near, two US senators raising the bogeyman of outsourced US jobs, have asked Indian IT giants - Infosys and TCS to provide information on how their allotment of H1B visas is used. This comes on top of the UK government deciding to review fast track visas issued to Indian technology workers. What is more than evident is that both moves are protectionist measures that come in response to the huge hue and cry and criticism, the respective governments have received over job losses in their respective countries.

Now, it is the turn of Great Britain to join others, such as, Germany and USA in trying to stem the inflow of highly skilled, relatively low cost Indian software professionals, who are much in demand by global employers.

However, as Laxman Badiga, a senior official of software firm Wipro Technologies, who has more than 1,000-engineers working in Europe, says the Indian industry has learnt to cope with the politically sensitive perception of job losses, particularly those in Germany.

Even so, Som Mittal, Chairman of the National Association of Software and Services Companies (NASSCOM) says it is incorrect to say employing Indian or other foreign professionals has led to job losses in the above-mentioned countries, and it is to be regretted that politicians in a bid to garner votes try and link unemployment with the import of skilled labour. “The import of skills, especially those in short supply, helps these companies by making them more competitive and efficient. This is crucial in a globalised and competitive world. The other extreme alternative would mean that some of these companies would wind up, with loss of all jobs.”

Relaxing visa restrictions two years ago, now Britain has ordered the National Audit Office to investigate the complaints received regarding job losses, as a result of the fast-track visa scheme.

In what Indian IT industry leaders view as a politically driven decision, Germany was the first to order a clampdown on the issuance of work and residency permits from August this year. Making an issue of jobs lost to outsiders, political parties forced the authorities to club software engineers along with others in the general category, when it came to the issuance of work permits. This saw Germany issuing only 20,000 permits to IT professionals in the year 2,000. To date, Indians with 13,500 work permits to their credit, constitute the single largest group of visa holders in Germany.

Since, Indian software professionals started looking at Germany as an alternative employment destination, an outcome of the economic slow down that led to lay-offs in the US two years ago, there has been great outrage in this European country. Indian firms say this has been responsible for the questioning and minute checks of travel and work documents that Indian IT professionals in Europe are routinely subjected to.

Phobia that has led to the arrest of several IT professionals from the sub-continent, in both Netherlands and Malaysia over alleged visa irregularities. Arrests which Indian IT firms say were unjustified and reports of which have sparked outrage in India, leading the country’s foreign ministry to take up the cases with the respective governments.

And, quite rightly too, as Indian IT workers help rather than hinder Europe or US economies and employment growth. While, most European countries, especially, Germany and Great Britain are technically challenged, it is Indian IT professionals who are bringing their outdated technology up to par with that of the 21st century. Besides, the German and the British government’s realisation of the skills shortage faced by their respective countries is the reason why they sought to rectify the imbalance by inviting help from professionals, in a bid to fill in significant gaps in the skilled segment of their labour markets.

Today, they cry wolf, when faced with soon to be held elections and the wrath of the unemployed electorate. Who will play David and inform Goliath, no one is to be blamed except their own lack of skills leading to unemployability. Instead, of venting their anger and lashing out at skilled professionals brought in to fill the gap, they should upgrade their CVs and downgrade their salary demands. Unless and until, they do this, they will have no option, but to take with a pinch of salt Indian skilled professionals doing what they do best.

What people have to realise is, when they do highly skilled work for half the wage an European or US IT worker charges, they help businesses towards profitability, thus creating additional employment. And, as for those American and European IT workers who feel they have been ousted from their jobs by cheap labour, then they must see where they are bested by skilled IT professionals from India, instead of blaming them for their job losses!

Leave a Reply

You must be logged in to post a comment.

eXTReMe Tracker