BPO Backlash May Not End With US Polls, Warns Expert

New Delhi, April 2 | Updated: Apr 3 2004, 05:30am hrs
The outsourcing backlash may continue to occupy the centrestage of US politics as the defeated party might like to keep the issue alive to pressure the ruling party, according to Norman J Ornstein, a resident scholar of the American Enterprise Institute for Public Policy Research one of the largest and most respected think-tanks in America.

The stakes are extraordinarily high and since it is expected to be a close fight between the Republicans and Democrats even smaller issues will become bigger and important.

It is like two sumo wrestlers fighting in the ring. A little foothold on the ground can help one pushing the other outside the ring.

Similarly, outsourcing as a symbol will become a significant issue for a party to get traction in the election, said Mr Ornstein while delivering a talk, organised by the National Association of Software and Service Companies (Nasscom), in New Delhi on Friday,

I wish I could say that we will be able to navigate it through and things will be better after the elections. I can only hope that an understanding (between the two parties over the issue of outsourcing) will emerge but it will need a great effort from both the sides, he said, adding that India would also need to put in greater efforts in explaining the advantages of outsourcing to the US political class.

We can use the data, anecdotes and case studies to demonstrate the advantages of outsourcing to the US economy, he said.

The election campaigns are expected to be around two issues: war against terrorism and economic conditions in the US.

While Bush administration has a comparative advantage on the issue of terrorism, John Karry has a comparative advantage on raising economic issues, said Mr Ornstein hoping that Kerry would not do what he was talking against outsourcing.

Keryy has a team of sophisticated economists who would not advise him against the economic interest of the US.