'Say no to Bangalore and yes to Buffalo,'-What does this US Slogan mean to India?

Recently, protectionist measures taken by the US government towards outsourcing has led to uncertainties for the Indian IT firms. The Obama administration has got the border security bill, passed in Congress which seeks to raise nearly USD 550 million by increasing the fee in the categories of H-1B and L1 visas for the next five years. The H-1B is a non-immigrant visa that allows US companies to temporarily employ foreign workers in speciality occupations. The decision to hike visa fee will be a blow to Indian IT firms which have a large exposure to the American market and which temporarily station a section of their engineers to offer near-shore services to their clients. According to the reports, Indian IT firms will be paying USD 200-250 million more per year, which will affect their margins. US President Barack Obama clearly stated that he will do whatever it takes to secure jobs for the US citizen. He asserted that he will give tax benefits to the companies who appoint the locals for speciality occupation and pull off tax benefit from companies who outsource from India and China.
     According to media reports the Indian IT-BPO industry that currently employs three million people is estimated to be a $60 billion business, about $50 billion is earned through outsourcing and the rest constitutes the domestic revenues. Certainly, the protectionist strategy is not in the best interest of businesses, be it Indian or American. Since outsourcing is one of the engines of economic globalization, it is unethical that one country, that too the largest economy in the world which till two years back was the strongest advocate of free market reforms, turns its back on outsourcing and moves towards protectionism.
     India has voiced its concern about the visa hike and Ohio ban during the talks held by Foreign Secretary Nirupama Rao to discuss President Barack Obama's visit to India in November . Rao has discussed these and many other issues that influences the relationship between the two countries this seems to be going through a transformational phase. Many people from the IT industry believe that this is the outcome of the rate of over 9%. Another reason could be the upcoming US elections in November and they hope these issues will subside once the US unemployment is solved.