Wipro, other IT firms hiring lobbyists in US: report

08 Jul 2011

With the US increasingly resorting to protectionist measures, particularly in the matter of issuing work visas, some software companies have started hiring professional lobbyists to push their interests in their biggest market, according to The Economic Times.

At stake is over $30 billion (Rs 1.3 lakh crore) in business every year, about half of India's total outsourcing revenue, the report says.

Among the companies mounting an aggressive public relations effort is Wipro, India's third-largest software exporter. Last year, it hired Melanie Carter-Maguire, a government relations professional, to launch its lobbying effort in Washington DC.

Between January and March this year, Wipro spent nearly $60,000 (Rs27 lakh) to lobby lawmakers and other officials about restrictive visa rules and policies that favour local companies.

Cognizant, which is headquartered in the US but employs over 80 per cent of its staff in India, spent $350,000 during the first quarter this year. Two years ago, it hired Robert Hoffman, a Capitol Hill regular, to lead its lobbying efforts, the report says.

As America struggles with slow growth and high unemployment, the campaign for the presidential election next year is well under way. With many citizens still associating unemployment with outsourcing firms, rhetoric is being combined with direct and indirect attacks on the business interests of Indian software companies, the report points out.