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India last bastion for high jobs growth

business Updated: Nov 18, 2008 13:53 IST

Bad times in the West may force companies to offshore more jobs to cheaper destinations like India, making it the last bastion for jobs growth, although US President-elect Barack Obama is vocally against outsourcing.

US-based staffing services firm Manpower, whose India business has grown 50 per cent this year, sees some slowing down in ITeS and finance sectors in the short-term but growth would return by mid-summer when effects of stimulus packages announced by multiple countries start showing, its CEO Jeff Joerres told PTI.

"In the global scenario India looks optimistic. Though the employment outlook looks slightly down but optimistic on a relative basis... We have to see how the wave hits the shores," he said.

However, companies that struggled to justify outsourcing in good times would find it easier to move jobs to low-cost destination citing savings, Joerres said.

Obama, in the run up to the presidential election, had spoken of ending tax breaks for companies that shift jobs overseas and give them to those investing at home.

Since the sub-prime credit crisis brewed into a global economic storm, there has been a 15-20 per cent slowdown in jobs growth globally as companies see their bottom lines shrinking.

Besides India, the countries that look promising in terms of hiring are China, Middle East and East Europe. These countries are likely to report promising growth rate as they have a booming domestic market and also because the base is small, he said.