Infosys co-chair: Mistake to erect protectionist barriers

Faced with a growing protectionist backlash in the United States, the co-founder of one of the world's biggest IT outsourcing companies remains confident that the political controversy over exporting technology jobs overseas will ebb.

Infosys co-chairman: Nandan Nilekani

"Given the economic climate, there will always be protectionism. When the economy slows down, it's a reasonable thing to happen," Infosys Technologies' co-chairman Nandan Nilekani said Monday, adding that cooler heads ultimately will prevail. "We continue to believe that outsourcing adds value to the economy."

Nilekani, who is touring the United States on a book tour, said that both the United States as well as the larger global economy would benefit by resisting the temptation to erect trade barriers or rules which slow the flow of labor and capital.

"But," he quickly added, "I can understand the sentiment about these matters."

And it is a sensitive issue as the issue of moving IT jobs overseas is a perennial topic of discord. Now, with technology companies handing out tens of thousands of pink slips as the recession gathers force, the question is that much more fraught. Late last year, word leaked to the Wall Street Journal that IBM would transfer 5,000 jobs from its U.S. payroll to India, where the cost of labor is lower.

Separately, the employee organization, Alliance@IBM, contends that Big Blue will fire around 10,000 people during the current quarter.

A related hot button: the H1-B visa for admitting high-skilled workers from abroad. After Microsoft earlier this year announced the first across-the-board layoffs in its history, Iowa Sen. Charles Grassley (R-Iowa) urged the company to rethink its approach and give Americans priority over foreigners for any available jobs.

So with leaders of the world's biggest economies meeting later this week near London for the G-20 conference, companies like Infosys will be closely watching the discussions for hints of protectionism. It's unlikely the meeting will be undercut by the adoption of beggar-thy-neighbor policies. Still, in the aftermath of the global financial meltdown, the free market approach championed for years by the Americans and the English is out of favor with many of the world leaders slated to participate in the conference.

Watching from the sidelines, Nilekani said he was aware of the political problems facing policy makers, but maintained hope that an increasingly intertwined global economy would, ultimately, trump parochialism.

"We believe that keeping free trade open is in everyone's interests," he said. "I hope that when the G-20 meets, they will keep free trade open."

[michaelo1966]

It's easy for India to find "hints" of protectionism: they need look no further than their own trade policies, which have done a pretty good job of shielding them from the current mayhem. They just don't want the rest of the world, or at least the US, to enact similar legislation.

The H1B program has gutted the incentive for US kids to study math or science and should be eliminated. Not reduced, not "reformed" -- just done away with entirely. Foreign nationals who want to study in US schools should have to pay tuition commensurate to enable natives to study with the same financial subsidies they received, and they should also be counted as "white" for every racial spoils purpose.

Enough of this nonsense; no other country gives out so much and receives so little in return. It's time for at least a semblance of balance.

[Arnav]

you are crazy. I did my MS in the US, I paid more tuition than any US student would have to and that too in a State Univ. Kids in the US do not APPLY to these courses , have you ever even looked at the stats for undergrad courses. A majority of the undergrad population in the US in science courses is American so your point is just plain stupid , H1-Bs have got no bearing whatsoever on students deciding what to do in life. H1-B visas are generally given to really hi-tech professionals who hold Ph.Ds Masters from good universities in the US. I will completely agree that its being exploited by individuals but come on, kids not taking courses as a result of that!! Kids do what they feel like and what their parents or they themselves can afford. Kids in the US hate math, logical reasoning , simple excel programming courses. They try to avoid it like the plague, aply demonstrated to me by students whom I taught in my capacity as a TA. Gimme a freaking break. Have you even looked at the Schooling system in the US. Such a large percentage of kids hate math & science that Americans should be really be worried about that not 65K intelligent people coming in and spending money and being taxed without any representation.
Just get over it and stop trying to blame everyone else for the mess you see around.

[HameRodriguez]

Indians technology workers are like robots just producing what has been outlined for them. Business and technology strategies, Business and Technology planning, business transformations, as well as application and infrastructureino solution architecture and designs are performed by high skilled American workers. The problem is companies like IBM thinks they can turn robots into strategic thinking people. GOOD LUCK.

[rsk27]

Mr HameRodriguez i request to take some time and do a little bit research in google to know what type of out sourced work we do(indians).We started as robots but now we are in a postion to develop a robot.

why your so called high skilled american workers could not predict the recession in advance when they are good Business and technology strategies, Business and Technology planning, business transformations, as well as application etc ?

[HameRodriguez]

Rsk27....
The American public has a misconception that Indian workers are much smarter and better than we are. There are many America programmers and other technology worker who are out of work because their jobs are being either outsourced to India or given to consultants on H1B visas at a lower cost. Also, Indian consulting firms do not hire Americans programmers or technologists. An Indian consulting firm hired my brother for a year. He worked 8 days the entire year. His job was to go to meetings to give clients the impression that American technologist worked for the firm. He called himself ?The AMERICAN PRESENCE?. Both the federal government and corporations need to stop lying to the American people. American technology workers just want a level playing field.

[globalist_agenda]

Every patriotic American should gladly give up his job to an Indian. Thirty two straight years of trade deficits, including record deficts during Bush II is not nearly enough sacrifice. Americans must abandon their antiquated notion of ever increasing standards of living at the expense of developing countries. You had a nice 100 year run, now give the wheel to someone else. You can dig through garbage dumps for a while. Flint Michigan is the new "City Of Joy".