Kokoomuksen syytä

From the Economic Times of India

Home Run

With the Republican party led by George W Bush on a home run in the US Presidential election, it is champagne time for the software and IT-enabled services community in the country.

The industry is pleased as punch that IT outsourcing wave will continue without any policy road-blocks. In fact, many of the industry executives that ET spoke to anticipate significant ramp up in business, post elections.

This is due to the fence sitters jumping onto the bandwagon and those on board accelerating their offshoring plans.

Great Period

The strong half yearly results posted by software companies in fact indicates an upswing in outsourcing contracts. A few senior executives said that the indications are that ’05 onwards will be a great period for the Indian software firms.

Although Presidential contender Democrat John Kerry in the later part of his pre election campaign scaled down his anti-outsourcing views, many in the software services industry said that his victory would have had a negative impact on the outsourcing business.

US represents the biggest market for majority of the Indian software vendors, and despite attempts to increase gain foothold in other geographies, the US market accounts for around 70% of revenues.

Good News

Sudip Banarjee, president, Wipro Technologies said that as the Republican party’s declared position on outsourcing is positive, their victory is good news for software and services industry.

He, however, said that it is too premature to predict if the quantum of business for Indian companies would grow.

Many senior executives like Nandan M Nilekani, managing director, Infosys are of the view that irrespective of which ever party occupies the White House, the outsourcing trend will continue.

He said, “We believe that the outcome of the US election will not have any impact on business. US is a strong proponent of free trade and corporate America is not swayed by political outcome. We are convinced that offshoring is a mega trend that will continue.”

Compelling propistion

A view echoed by R Chandrasekaran, managing director, Cognizant who said that “Global sourcing has a compelling value proposition as US and European corporations work to stay competitive in the global marketplace. We believe that the momentum towards global outsourcing will continue irrespective of the outcome of any particular election.”

Ravi Ramu, CFO, MphasiS BFL, said that outsourcing will gain support from who ever is in power in the US as it offers a compelling economic and business benefits.

Phaneesh Murthy, CEO, iGATE Global Solutions, explained that since a large number of IT and BPO deals are being talked about and signed now, the process is not likely to be impacted as most of the Fortune companies have reaped the benefits.

He also added that more and more companies are spending their budget on work being done in India.

“It is clear that for mainstream services like IT, which has been going on for a number of years now, work will continue as normal.. If at all, there could be some new legislation’s that may tax certain types work done and impact newer BPO-style back-office work, in the event of Kerry winning the election. Ultimately, businesses do what is best for them and we are confident that our business model helps businesses get more competitive,” he said

More Offshoring

Sharing the optimism of the software exporters, BPO and call centre firms too said that a Bush lead Government would benefit the fast growing BPO sector. R Mohan, CEO-IT division, HTMT, said that support for outsourcing was not coming out clearly from the Kerry camp.

He said, “If Bush is back in the saddle, we can logically assume that outsourcing will grow.” He also expects the H1 B, which was scaled down drastically to get a relook.

Bush Bonus

Meanwhile, a recent survey conducted by the META Group, a technology research firm said that almost half of business and IT professionals believe the ’04 US Presidential election will impact the number of US companies using offshore outsourcing.

The survey found that almost 50 percent of respondents believe that offshore outsourcing will increase if George Bush is elected, and that it will decrease if John Kerry is elected.

“Despite each party’s position about the merits or ills incurred from offshore outsourcing, the fact is that offshore outsourcing is a manifestation of an ongoing and long-term economic evolution that will not be greatly impacted by either candidate,” said Stan Lepeak, a vice president with META Group’s outsourcing and service provider strategies service.

Legislation aimed at the private sector, much of which rests on dubious grounds, will face a number of challenges and have only nominal impact on the decision of businesses to send business offshore.

Kokoomus ei ole ollut hallituksessa vuosikausiin. Demarit sitä vastoin on ollut pitkään päähallituspuolue, eikä mitään ole saatu aikaan työttömyyden - tai minkään muunkaan - suhteen.

Tosiasiassa demarit eivät edes halua vähentää työttömyyttä, koska silloin potentiaalisten äänestäjien määrä vähenisi. Vaaalikarja kun on niin tyhmää, että se uskoo "sosiaalidemokraatit pitävät huolta" -sloganeihin.

Vähän sama juttu oli ex-Neuvostoliitossa. Aikansa kommunismiin uskottiin, mutta lopulta ihmiset tajusivat, että kyse on suuresta kusetuksesta.