How India’s outsourcing sector looks like at present

Indian IT industry is much worried these days.

The worry emanates from the recent developments in US, like -- a proposed new tax code by President Barack Obama that would end tax breaks for firms that create jobs and profits overseas; or the Ohio Statement—which is a ban by the U.S. state of Ohio on outsourcing government contracts funded with state money.

The Indian IT industry believes that this will hurt Indian outsourcers; as such protectionist measures by US will put future curbs on technology work that is sent overseas by U.S. companies.

A delegation of Indian IT companies will visit the United States next week to raise their concerns

Amidst all these worries, it becomes logical to see how India’s outsourcing sector looks like at present.

Indian Information Technology Industry is a $60 billion industry at present. Outsourcing constitutes a major part of this industry. That too, the Indian outsourcing sector generates about 70 percent of its revenue from the United States alone.

India's outsourcing sector employs more than two million people(more than 20 lakh), mostly young workers, who boost demand for everything from luxury apartments to electronics gadgets to cars, and accounts for more than 5 percent of the country's total economic output. --------

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