US election results: Obama re-election not best news for IT outsourcing industry, says Phaneesh Murthy

BANGALORE: The re-election of US President Barack Obama is not the best news for IT outsourcing industry, according to CEO of iGATE, Phaneesh Murthy.

"Not the best news for India or the IT outsourcing industry. However, we need to understand how much of the election rhetoric continues into 2013 and that will determine the full implications to us," Murthy said.

Full Coverage: US Presidential Elections 2012

"The concern over the deficit and jobs will continue (in the US) and in my mind, will force the sluggishness to remain in the economy," he said.

Obama today won a second term in office overcoming a stiff initial challenge from his Republican challenger Mitt Romney.

Obama in this presidential elections campaign had criticised outsourcing of jobs to countries like India saying that US needs to create jobs locally.

The US and Europe account for over 80 per cent of revenues of the Indian IT industry.