TPT July 2009

G lobal M arketplace

Q The restrictions on H-1B visas are very real aren’t they? [The reference is to quotas mandated by the Employ American Workers Act, a component of President Barack Obama’s economic stimulus programme. The limitations imposed on “specialty occupation workers” from overseas have drawn strong criticism in the US, notably from Microsoft chairman Bill Gates.] A This absolutely is a concern, but we don’t want to over-react until we see what the actual legislation is. We can’t worry in a vacuum. We’ve met in Washington with the people concerned, and expressed our views. Any abuse of the visa system must be stopped, and Nasscom will help to do that. That said, I believe that we should be hiring in the US and thereby participate in its economic recovery. Several of our companies are already looking to create employment in the US. It’s the ideal time to get the best talent. Despite his concerns, Mr Bhasin retains his optimism. When asked what lessons might be drawn from the current economic downturn, he said, “This is a good time for [Indian] IT firms to rethink their business model in light of the new economic realities. We must take a hard look at our cost base and the type of contracts we undertake. We should think about how we can diversify our portfolio so as to be less concentrated in the US market. Our companies are young and flexible so can change quickly.” In India, a proactive approach to bridging the gap between ‘educated’ and ‘skilled’ India is a country that values education, as demonstrated by the 3.2 million Indians who receive college degrees each year. The Confederation of Indian Industry (CFI) says that, of these, 25% of technical graduates and 15% of others readily find employment. But the recent boom in telecommunications, information technology, and related fields — huge as it is — will have absorbed all it can of that year’s crop of talent by graduation day. What about the others: those with college degrees but little or no job prospects? According to the CFI, some 69% of unemployed Indians are educated but lack skills. Only 6% of the workforce holds professional certification other than an undergraduate degree. Addressing a recent New Delhi conference on linking education to employability, TKA Nair, principal secretary to the prime minister, interpreted the percentages. “The stark reality is that our education system churns out people, but industry does not find them useful,” said Mr Nair. “The necessary development of skills is missing in our education.” Reporting from New Delhi, Rama Lakshmi of the Washington Post wrote that the Indian government acknowledges the skills gap and has an ambitious plan to boost the number of those holding professional certification to 12% of the workforce within five years. The goal is to be met by improving vocational training and encouraging cooperation between educational institutions and industry. (“India’s Business Schools Out of Date,” 3 May) Indian industry has anticipated the government initiative. Over the past three years, the information technology and outsourcing giant Wipro (Bangalore) created several funds to finance grants, research scholarships, and sabbaticals for teachers in engineering schools. “This is not philanthropy,” Pratik Kumar, Wipro’s executive vice president for human resources, told the Post . “If we don’t do this now, it will hinder the future growth of our industry.”

Another fan is Jon Wellinghoff, the new chairman of the US Federal Energy Regulatory Commission, who in fact coined the expression “cash-back cars” and has said outright that the nation’s pending shift to renewable power will require a growing V2G fleet. As noted in the Monitor , without a battery backup, fluctuation of wind and solar power throughout the day could destabilise the energy grid. Mr Wellinghoff, making a connection even more sweeping than vehicle-to-grid, declared, “[V2G] vehicles are a vital part of US energy security and our ability ultimately to provide for the economic stability of the country.” Spotlight on: India Trends in the information technology industry are transforming Indian-US corporate relations Over the past year Atlanta-based Delta Air Lines, the world’s largest carrier, has been shifting customer service calls back from centres in India to its offices in the United States, and by the end of the first quarter had totally dispensed with its Indian contractors. Betsy E Talton, a Delta spokeswoman, told Bloomberg News (18 April) that the company has about 4,500 employees who take customer service and reservation calls. The outsourcing to India engaged about 6.4% of this work force. Delta is the second big US carrier to have repatriated its customer service work from India this year. United Airlines did so in February. These changes, while specific to ticketing and related customer services, are reflective of a more general adjustment whereby American companies are resuming work that they had placed with firms in India. A recent edition of Forbes Asia featured an interview with Pramod Bhasin, president and chief executive of the Indian outsourcing firm Genpact. He is also the new chairman of the National Association of Software and Services Companies (Nasscom), the influential advocate for India’s information technology industry. A few excerpts, lightly edited, from Mr Bhasin’s remarks to Forbes ’s Naazneen Karmali provide an Indian perspective. (“India Outsources — to the US,” 10 April) Q Layoffs around the world have led to a backlash against outsourcing. How are you dealing with this? A This is a big issue that we’re facing. When unemployment doubles in the countries that we serve it creates its own set of social pressures. People are sore about losing their jobs and that’s perfectly understandable. But our industry isn’t responsible for these layoffs, which have been caused by other factors. We’re working with governments around the world to make ourselves heard. We bring real value to global companies, and it would only hurt them if they dispensed with our services. Q What is your strategy to address the protectionist wave in the US, your biggest market? A There’s a lot of protectionist noise today, and our job at Nasscom is to [filter out] the noise. We should respond to the reality, not the rhetoric. American companies are not going to turn away from global intellectual capital. The US is always going to be our biggest market.

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