Bangalore and Buffalo

I have always found it pretty funny how easily you can get a rise out of folks in the U.S. if you bring up outsourcing and Indian accents on the end of customer support lines (Mom). But to my surprise, you get the same kind of excited responses when you bring up the subject here.

Few Bangaloreans are aware President Obama is winding down the war in Iraq or that he passed healthcare reform, but they all are well aware of his position on reforming American corporate tax structure.

You might recall the line, “our current corporate tax system encourages paying lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York.'' It’s catchy but it has created a firestorm in India.

The President is making an official visit to Delhi on November 5 and as far as Bangalore is concerned the only state issue worth addressing is his stance on outsourcing. This is a position reflected by taxi drivers, waiters, corporate stiffs and seemingly every newspaper.

I suppose this isn’t that surprising considering outsourcing has become almost as synonymous with India as yoga. In fact, outsourcing has provided much, if not the majority, of the fuel for Bangalore’s meteoric rise over the past decade.

IT firms and call centers seem to be on every block and a trip to the outskirts of the city puts the industry’s contribution in perspective. What were once village farms five years ago are now massive IT parks that are the shiny, new homes of tens of thousands of Indian workers.

This outsourcing fiasco – and yes, I am going to call it that – is a wonderful example of the power of words. I’m a card carrying member of the Obama cult but prez you should have known better.

Considering U.S. aims in Pakistan and Afghanistan, and global issues high on the President’s agenda -- such as climate change, the relationship between the U.S. and India has never been more important. The Buffalo/ Bangalore comment should have never happened.

I find it rather depressing that hours of the President’s visit are going to be spent discussing Dell call centers when Muslim extremism in Pakistan, the Kashmir issue and U.S. India cooperation on renewable energy development await well-deserved attention.