Panic over US jobs plan

Updated on: Tuesday, January 31, 2012

With US President Barack Obama’s announcement in the state of the union address this year to discourage outsourcing with taxes, several students in engineering colleges across the state are apprehensive whether IT companies will continue their recruitment drive.

President Obama said the US needs to refocus the corporate tax structure to reward businesses who work to keep jobs in that country and end tax incentives for those that outsource.

K. Rajesh, a third year B.Tech IT student, citing media reports about the US government’s decision, said America was one of the largest users of Indian IT products. If it takes steps that would not pay to outsource work to Indian companies, it would help American companies, but prove detrimental to Indian IT majors and small companies dependent upon them for sub-contracts.

“As a student, I am worried whether IT companies will recruit students from engineering colleges this year as they might not get any orders from US companies if the US Congress and Senate pass a bill in line with the President’s suggestion. Besides, Europe is already in turmoil due to a debt crisis. So, I don’t know whether they will spend money on outsourcing,” he said.

Another student, Shanthi, said students should stop looking at IT companies as the only source of employment. “I think the time has come for us to look at other industries like bio-technology, mechanical and construction sectors which are also dependent on information technology nowadays. Core companies need to catch up with advancements and recruit more students,” she said.

The placement officer of a self-financing engineering college, on condition of anonymity, said several students had raised the same question as they were apprehensive about placement in one of the IT majors.

“We won’t be able to answer the questions raised by the students unless IT companies come out with a reaction to the US President’s decision. It will not be advisable for us to jump to conclusions,” he said.

More Education news

• Karnataka department of higher education to further strengthen protection to women students and employees
• Heads of government and private schools directed to keep a close watch on the behaviour of teachers
• Chairman of the National Commission for Minority Educational Institutions submits his report
• Everyone will be given due representation says Goa CM
• Pune Education Department to hold meetings with schools to ensure a smooth RTE implementation
• Health and Medical Education, Forest and Home departments within the ambit of Public Services Guarantee Act
• 'value education' courses in engineering colleges to inculcate better values and character building
• students challenge new NET gidelines
• Proposed multi crore edu city project nearing completion
• 21 engineering colleges affiliated to the Dr Babasaheb Ambedkar Marathwada University to seek accreditation
• MBBS and PG medical seats to be increased by 50% and 100% respectively from academic year 2013-14
• M S University's faculty of fine arts mired in controversy over a painting hurting religious sentiment
• IICA inks MoU with Bangalore-based National Law School of India University for forging academic partnership
• President asks private players to contribute in improving the standards of higher education
• First technical and medical university at picturesque Apatani Plateau in lower Subansiri district
• Prayas scheme to be extended to 4 more districts
• Jamia Millia Islamia Professor gets Japan Society for the Promotion of Science Fellowship
• Japans new government will not waive tution fee to pro-Pyongyang high schools
• Most Israeli high school students found accessing Mobile phone during class hours
• UGC notifies the procedure and criteria for declaration of result for NET to be conducted on 30.12.12