Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Risk

Obama Flip Flops On Outsourcing

President who promised to keep more jobs in the U.S. now says outsourcing to India is a "win-win" for both countries.

President Obama, who last year said U.S. companies should create jobs in Buffalo not Bangalore, appears to have had a change of heart on outsourcing's effects on the economy.

Speaking Monday at a press conference in New Delhi, Obama said the view that outsourcing costs U.S. jobs while enriching India is nothing more than a "stereotype."

The president, at the podium with Indian prime minister Manmohan Singh, said the notion India is stealing IT and other jobs from the U.S. is outdated. "I think both countries are operating on some stereotypes that have outlived their usefulness," Obama said.

"In every discussion I've had with Indian businesses, what I've seen is that our countries are matched up in a way that allows for enormous win-win potential," said the president.

Outsourcing, where U.S. companies send programming and other tech work to low-cost countries like India, has drawn considerable flak from worker groups. Obama looked to cash in on that sentiment in his presidential campaign, when he promised to make it more difficult—through adjustments to the tax code and other measures—for U.S. companies to send work abroad.

Last year, as president, Obama slammed tax laws that, in his view, made it easier for businesses to "create a job in Bangalore, India than if you create one in Buffalo, New York."

Obama seems to have altered his view. "We're very proud of our high-tech industries and we think we make some of the best products in the world, and we want to sell them to a growing Indian market," Obama said during Monday's press conference. "But it turns out some of those same technologies are ones that will allow Indian entrepreneurs to grow and thrive and create jobs right here in India," Obama said.

While the president's reversal on outsourcing may anger some worker groups that supported him during his run to the White House, many businesses may welcome the fact Obama has flip-flopped on the issue. A significant number of U.S. companies, from General Electric to Boeing and IBM, rely on ongoing access to Indian IT and engineering talent as they look to build products that are globally competitive.

Indian prime minister Singh also defended offshoring during the press conference. "Our outsourcing industry I believe has helped improve the productive capacity and productivity of American industry," said Singh.

Obama is in the midst of a ten-day tour of Asia that will also see him make stops in Indonesia, Japan, and South Korea.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
News
A Startup With NSA Roots Wants Silently Disarming Cyberattacks on the Wire to Become the Norm
Kelly Jackson Higgins, Executive Editor at Dark Reading,  5/11/2021
Edge-DRsplash-10-edge-articles
Cybersecurity: What Is Truly Essential?
Joshua Goldfarb, Director of Product Management at F5,  5/12/2021
Commentary
3 Cybersecurity Myths to Bust
Etay Maor, Sr. Director Security Strategy at Cato Networks,  5/11/2021
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win an Amazon Gift Card! Click Here
Latest Comment: Google Maps is taking "interactive" to a whole new level!
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you today!
Flash Poll
How Enterprises are Developing Secure Applications
How Enterprises are Developing Secure Applications
Recent breaches of third-party apps are driving many organizations to think harder about the security of their off-the-shelf software as they continue to move left in secure software development practices.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-18194
PUBLISHED: 2021-05-17
Cross Site Scripting (XSS) in emlog v6.0.0 allows remote attackers to execute arbitrary code by adding a crafted script as a link to a new blog post.
CVE-2020-18195
PUBLISHED: 2021-05-17
Cross Site Request Forgery (CSRF) in Pluck CMS v4.7.9 allows remote attackers to execute arbitrary code and delete a specific article via the component " /admin.php?action=page."
CVE-2020-18198
PUBLISHED: 2021-05-17
Cross Site Request Forgery (CSRF) in Pluck CMS v4.7.9 allows remote attackers to execute arbitrary code and delete specific images via the component " /admin.php?action=images."
CVE-2020-21831
PUBLISHED: 2021-05-17
A heap based buffer overflow vulnerability exists in GNU LibreDWG 0.10 via read_2004_section_handles ../../src/decode.c:2637.
CVE-2020-21842
PUBLISHED: 2021-05-17
A heap based buffer overflow vulnerability exists in GNU LibreDWG 0.10 via read_2004_section_revhistory ../../src/decode.c:3051.