Making a strong anti-outsourcing pitch after getting the Democratic Presidential nomination, Barack Obama vowed to end tax breaks to companies that ship jobs overseas if he is elected to office.

Playing to the gallery on the hot button issue of outsourcing in his acceptance speech, Obama kept up with the rhetoric on the subject that has been a staple of Democratic campaigning and went on to spell out what he would do as President on the front.

". . . unlike John McCain, I will stop giving tax breaks to companies that ship jobs overseas, and I will start giving them to companies that create good jobs right here in America," said Obama, who has been fiercely opposing outsourcing. The remarks drew a loud applause at the Denver Democratic National Convention.

Often played the anti-outsourcing card since he entered the Presidential race, Obama has said that while the US cannot 'shy away' from globalisation it would have to take measures to ensure that jobs are not shipped overseas.

Facing the heat from US presidential hopefuls who blamed 'shipping jobs' to China and India for rising US unemployment, the India Inc had launched a counter-offensive telling Americans that the industry is in fact creating new work opportunities for them.

Reacting to the fresh offensive from Obama, Nasscom chairman Som Mittal said American companies will themselves favour outsourcing.

"American companies themselves will have to find the right balance of who they want to service themselves. MNCs that have set up their own houses in India have increased competitiveness in furthering their own company objectives," Mittal said.

Infosys' [Get Quote] HR Director T V Mohandas Pai said the US industry has accepted India's outsourcing story but preferred to wait for what the US policy would be after the Bush Administration demits office.

• India and Outsourcing: Complete Coverage