India Expects BPO Backlash In US To Blow Over

New Delhi, April 6 | Updated: Apr 7 2004, 05:30am hrs
Assuming that the growing sentiment against outsourcing in the US has a lot to do with electoral politics, India expects the American society to be more objective in assessing the impact of outsourcing once the presidential elections are over, foreign secretary Shashank said on Tuesday.

We hope that with the immediate preoccupation with election processes (in the US) there is a natural tendency to see immediate results... We will be able to overcome the perception (of job loss due to outsourcing), the foreign secretaty said.

Both India and the US would see to it that there was larger growth of employment once election process was over in the two countries, he said at a seminar on Indo-US economic cooperation, organised by Indo-American Chamber of Commerce.

He said citing a study that there was double the number of job growth in the US due to BPO than the number of jobs lost, citing a study.

India would take into account the issue of free trade agreement with the US as suggested by the domestic industry, he said.

Over 100 US corporations had set up their R&D hubs in India while foreign investment outflows from India to the US has been of the level of $ one billion with the US becoming the leading recepient of Indian investments.

He said both governments were in dialogue about how best utilise the potentials in areas like services and knowledge-intensive industry and tap the trade and investment opportunities in tele-medicine, biotech, healthcare, space applications, pharmaceuticals and pension market.

PTI