Obama softens his tone on offshoring
If Congress acts to increase the cap on H-1B visas, then Obama is likely to support it. Obama supported an H-1B cap increase of up to 180,000 from 85,000 as a senator in 2007. The Obama administration has said little about the visa generally, except in legal papers where it highlighted the visa's importance to U.S. industry and said that lack of access to the visas creates a "competitive disadvantage" for U.S. companies.
What the Obama administration did in India is relax some export controls, which should make it easier for U.S. firms to sell defense- and security-related products to the Indian market, said Sanjay Mullick, an attorney who specializes in export controls and economic sanctions at the law firm Pillsbury Winthrop Shaw Pittman LLP. He said the change in export controls is significant.
"We're sitting here with 10% unemployment and the best technology in the world," Mullick said. "When we have export control restrictions that are as outdated as they were, what we're doing is basically compromising the ability of U.S. firms to play in this fantastic opportunity."
The agreement on export controls is "helpful in sending a message that the relationship is on a new level now, a level of presumption of trust," Mullick added.
Ron Hira, an associate professor of public policy at the Rochester Institute of Technology, said Obama accomplished what he set out to do in India, which was to "appease business leaders both in the U.S. and in India. "
"This shouldn't have taken anyone by surprise, since Obama and his economic team has never taken offshoring seriously," Hira said. "He's been in office two years and took no actions on offshoring, in spite of a few speeches."
Patrick Thibodeau covers SaaS and enterprise applications, outsourcing, government IT policies, data centers and IT workforce issues for Computerworld. Follow Patrick on Twitter at @DCgov or subscribe to Patrick's RSS feed . His e-mail address is email@example.com.
- H-1B loophole may help California utility offshore IT jobs
- H-1B applications surge to 172,500, twice the cap
- U.S. hits H-1B cap with 'high number' of petitions
- Durbin warns Republicans standalone H-1B hike plan will fail
- Offshore firms took 50% of H-1B visas in 2013
- H-1B visas produce net IT job boost, trade group says
- Gates sees software replacing people; Greenspan calls for more H-1Bs
- Use of H-1B alternative skyrockets
- GOP presses ahead on H-1B, green cards with vague, muddy statement
- 5 reasons why your IT job search is getting harder
Read more about IT Outsourcing in Computerworld's IT Outsourcing Topic Center.
- Path Selection Infographic Path Selection Infographic
- Hyperconvergence Infographic A wide range of observers agree that data centers are now entering an era of "hyperconvergence" that will raise network traffic levels faster...
- Preparing Your Infrastructure for the Hyperconvergence Era From cloud computing and virtualization to mobility and unified communications, an array of innovative technologies is transforming today's data centers.
- How WAN Optimization Helps Enterprises Reduce Costs If you wanted to break down innovation into a tidy equation, it might go something like this: Technology + Connectivity = Productivity. Productivity...
- Cloud Knowledge Vault Learn how your organization can benefit from the scalability, flexibility, and performance that the cloud offers through the short videos and other resources...
- LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users? All IT Outsourcing White Papers | Webcasts