US protectionism, Indian IT companies hiring in USA and Eurupe

Recession has given a chance to the developed countries to use protectionism measure to save their economy and jobs. Though these are in contrast to the what these developed western countries were preaching to the developing economies but they have freedom to choose what they want as they have resources and consumer demand. Indian IT companies are very much worried from this trend and have been quite vocal to oppose any such action. Azim Premji has gone to the length of suggestion that if US will use protectionism then the US will be chocked of talent and it will start a trade war with the India and China. Though China does not seem to cooperate with India on many trade issue but Premji tried to use the weight it carries.

In the hindsight these IT companies owned by Indian are taking precautionary steps. First, they have not used the H1B visa aggressively for next year. Though the argument is that recession has hit the demand for H1B but if it was not protectionism, these companies would have applied for H1B visa just for the sake of holding these visa and use in later years when the economy improves. Second and more controversial step these companies are taking is that they are recruiting in US and European markets. For example, TCS has hired over 1000 non-Indian in last one year. Infosys bought Axon group last year and now it is eyeing more companies in US and Europe for acquisition. Though there is nothing wrong in acquiring foreign firms and/or hiring people of any nationality for any multinational company but the irony is that these companies do not accept the fact that they use India as their base because they get cheap labourers (or employees). When a foreign listed multinational firm opens a center in India, China or Vietnam, they are honest to acknowledge that they coming to these countries to use cheap labour and relaxed regulations.

Indian companies use the arguments that US does not have talent but now they are able to recruit and acquire companies in US and Europe. On the other hand in India, they try to represent the only hope for the aspiring middle class families. Graduate from any educational stream end up getting jobs in IT and BPO sector as they get paid better than in other sectors and a chance to go to US on on sight projects. These companies are using business practices to maximize their profit and return to shareholders (or stakeholders) but arguing that the Government of India will/should have trade war with the western countries to safe guard the interest of private companies is too much to expect.