IT sector calm as thunderclouds of US protectionism loom

The IT sector has become very concerned about the implications of Obama's latest statements. However, CNBC-TV18's Shreya reports Indian IT companies are positive on meeting NASSCOM's growth projection of 12-14 percent despite the threat of protectionism in the US.

The NASSCOM’s growth guidance of 12-14 percent has been taken as a positive by most IT firms with companies such as KPIT Cummins and Mindtree etc saying that they were confident of meeting this target if not exceeding it going into the next fiscal.
Speaking at the NASSCOM Leadership Summit, Richard Rekhy, CEO, KPMG India said, "This will not have any impact in the long-term because people have realised that outsourcing to countries like India is not just about cost, it's about quality, delivery, efficiency and consistency. India stands high up in the value chain so to re-create that in any other country is not going to be so easy."
"This has been happening for last many years now. I personally think it will have very little impact on the industry. Indian companies are heavily hiring also in these areas. We have more than 1,000 employees in North America," added Kishor Patil, MD & CEO, KPIT Cummins.
Commerce minister Anand Sharma said, “We hope that nothing will be done to would adversely impact the growing partnership with India, particularly in the technology sector.
Protectionism and tighter visa norms have been a major concern for IT firms for a long time and rising visa costs threaten to impact margins. NASSCOM is assured that it will make an attempt to resolve these concerns at the earliest.
The core focus of the NASSCOM Leadership Summit is on protectionism with President Obama reiterating his initiative to cutting taxes for companies that create more American jobs. The lobby body has joined hands with government officials in trying to arrive at a solution and bilateral discussions to resolve issues pertaining to visa and protectionism.