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Canada screams over IT outsourcing to India

Canada’s concern on jobs being outsourced, especially, in the IT sector, may result in a severe backlash for India’s biggest IT companies, Tata Consultancy Services (TCS) and IGate Corp. These companies may have to wait for a resolution to this new problem at least till mid 2014. Because by this time, top banks in Canada and financial services companies hope to decide on whether or not to give work to Indian software services companies.

Canada’s leading banks  Royal Bank of Canada, Toronto Dominion Bank, Bank of Nova Scotia, Bank of Montreal and the Canadian Imperial Bank of Commerce  are under pressure within Canada to create more jobs against rising unemployment rates.

Says Ben Trowbridge, CEO of Texas based advisory firm Alsbridge Inc. “ Offshoring is a politically sensitive issue and not popular in the voters’ minds as elimination of a job through cost cuts is seen differently from offshoring a job to a third party country.”

The current offshoring of jobs controversy actually arose from a probe into a IGate-RBC contract that was using temporary foreign workers from IGate to replace permanent employees. RBC also reportedly faced flak from its clients who threatened to shut down their accounts with the bank if it continued to outsource work to India.

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