BANGALORE, India -- India's software industry expressed relief over the re-election of President George W. Bush, saying it lessened the likelihood of U.S. restrictions on the outsourcing of U.S. technology projects to India.
Industry groups here were nervous about presidential candidate Sen. John Kerry's policies on outsourcing. While Kerry clarified his stance during the campaign, companies here nevertheless expressed relief over Bush's second term.
Reflecting that relief, the National Association of Software and Service Companies (Nasscom) said: "The Indian IT industry welcomes the re-election of George W. Bush. The U.S. is a powerhouse of the global economy and the Indian IT industry is delighted in being a partner to U.S. corporations, helping to make them more competitive," said Nasscom President Kiran Karnik.
Nasscom estimates that Indian software exports to the U.S. account for 68 percent of India's total and have been growing at around 30 percent annually. "We are confident that with George Bush getting re-elected, the growth momentum will continue," Karnik said.
The group cited U.S. industry studies concluding that offshoring to India has resulted in only minimal job losses. U.S. engineering groups hotly contest those conclusions, arguing instead that U.S. companies are tapping into cheap Indian labor to improve their bottom lines.
Nasscom said it also hoped the Bush administration would eliminate restrictions on work visas "so that there is unhindered movement of professionals, who play a key role in contributing to the growth and development of the U.S. economy."
Shares of the Indian major software companies such as Infosys and Wipro opened higher on Thursday (Nov. 4), reflecting the optimism the Bush re-election has generated in the country's software exports services industry.