The last few days have turned the clock back for the Indo-US relationship as far as technology and back-end outsourcing are concerned. The US Senate has passed its Border Security Bill with the intention of raising more funds for border security. Fair enough. So, how do they go about it? Raise H-1B and L-1 visa fees! A few days later one US Senator takes it up a few notches further and calls Infosys Technologies a ?chop shop?! That?s back to back blows on a sector that has put India on the global business map, and what do we do? Take it on the chin and move on.

Infosys of course termed the ?chop shop? mention as ?distressing?. But was that enough? The IT industry clearly does not want to upset the US administration and has decided to keep away from any more controversies. The move to raise additional funds for the Border Security Bill is the US?s internal matter. But the decision to raise H-1B visa fees will impact the operating margins of Indian IT firms, and it is to see a pattern now. US President Barack Obama, not too long ago, made a very famous statement linking Bangalore and Buffalo, making public his dislike for US companies that outsource work to India. At that time too, India decided to ignore the statement for the most part. There were a few noises made here and there. Lots of sound and fury, which did not add up to anything significant.

But the ?chop shop? comment by Senator Charles Schumer on Infosys Technologies?rated as one of India?s most respected firms?was quite a shocker. People in Bangalore technology corridors, however, are not in a retaliatory mode. Infosys?s Mohandas Pai came out with a statement but it came after a lot of prodding from journalists. Initially it looked like Infosys would let it pass. And considering its famed conservative approach, that could well have happened. But it reacted, though not very strongly.

The silence that the rest of the IT fraternity has maintained has also not gone unnoticed. Most other firms have chosen not to react. The fact of the matter is that US contributes almost 60% of the revenues of Indian IT services firms. To say that US is an important market would be an understatement. It is their life support. So one can understand why the industry is keeping mum. But two wrongs do not make a right. This clearly is the time to react, and pretty strongly at that.

Even the visa fee hike?H-1B will involve an additional fee of $2,000 per filing if the Bill turns into law?was received with a sense of dejection. This Bill requires that companies with 50% of employees under H-1B or L-1 visas pay substantially higher fees, including renewals, for each foreign worker. If this Bill passes muster then technology companies would be spending a lot more to bring temporary skilled workers to the US, and India would definitely bear the brunt of it.

Disappointingly, no one felt the presence of any proactive leadership in this matter. Nasscom as an IT industry body needs a closer examination at this stage. Its president Som

Mittal remains a tireless voice and seems to be doing his best to make India heard in the tech community in the US. But the time has now come to step up efforts.

Nasscom?s contribution is highly valued in IT circles, but now they need to re-examine how they are going about their activities in the US. The question is are they meeting the right people? Are they meeting them at the right time? Are they able to influence key senators? Nasscom undertakes frequent trips to the US, but maybe they need to revisit their strategies, because what they are doing at the moment does not seem to cut any ice with US influencers.

The other aspect is about the Indian government itself. Some strong support from the government quarters cannot harm anyone in such times. After all, Indian IT services firms have given the new economy a big thrust in post-liberalisation India.

The position that India has taken in this matter is probably the way it handles every other sensitive matter. Keep quiet, and let people forget. Schumer?s comment likening Infosys to a place where stolen cars are dismantled has come when he is under remarkable pressure. He is facing a re-election. The unemployment rate in the US is forcing its politicians to react under pressure and make jingoistic statements. Nasscom believes that it?s probably not the right thing to react to such remarks, and give them undue importance. That?s one way of looking at it. But do we need to react the same way every time?

dj.hector@expressindia.com