Indian Investments Can Help Reduce Outsourcing Backlash

New York | Updated: May 4 2004, 05:30am hrs
Major Indian software companies, like Wipro and Infosys, should make some high profile investments in the United States to take the heat off backlash against outsourcing, according to representatives of several Indian-American organisations.

This was the method used by the Japanese when they came under attack for taking away businesses from the US in the last decade, they said. More than 25 representatives of Indian American organisations attended a seminar on outsourcing organised by the office of the Indian ambassador for people of Indian origin and non resident Indians, B K Agnihotri over the weekend.

Mr Agnihotri cautioned against angrily reacting to the backlash and said the emphasis should be on educating the lawmakers about the benefits of outsourcing to both countries. Besides, the issue has been caught up in the election year politics in the US and things would settle down after the elections, he said.

Indian Americans were now contributing substantial funds to both Republican and Democratic campaigns and that gives them a strong leverage to interact with the lawmakers, he said.

The representatives said the Indian companies, which have earned substantial profits from information technology (IT) outsourcing, need to show they were creating jobs in the US also, they said.