The President of the United States Barack Obama had made his views clear on the issue of outsourcing on Wednesday.

Mr. Obama came down heavily on outsourcing companies indicating that tax breaks and concessions will go to companies who create jobs in the US alone. It is just a week ago when Ohio State Governor imposed a ban on outsourcing from his state. Ironically, Mr. Obama was delivering his speech on Wednesday in Cleveland, Ohio. Many feel that this move from Obama is because of the upcoming elections in November for 37 seats in the US senate.

The President also assured tax breaks and liberal concession to companies that create jobs in the US. “One of the keys to job creation is to encourage companies to invest more in the United States. But for years, our tax code has actually given billions of dollars in tax breaks that encourage companies to create jobs and profits in other countries,” Obama aid.

The latest comment from Obama has caused concern among the head of IT companies in India. The IT industry has an export value of $50 billion every year. What is more worrying is the fact that 60% of IT projects that these companies get is from the US. Many economists feel that this sort of behavior from the US has caused a trade barrier between the two countries.

Mr. Obama is due to visit India in November this year.