Outsourcing cannot be stopped: Mahindra

Written by Agencies | Jaipur | Updated: Feb 28 2009, 22:54pm hrs
The outsourcing industry in India should not worry about the economic downturn or any protectionist move by the US as India provides quality products at lower cost, which foreign companies generally seek for, M&M group Managing Director Anand Mahindra said.

During the inauguration of group's Light Engineering & handicrafts SEZs at Mahindra World City here, Mahindra told reporters that India and China are the emerging outsourcing hubs for foreign companies and the professionals here should be optimistic.

Reacting upon US President Barack Obama's plan to clamp down on the outsourcing industry, he said that the US cannot stop outsourcing works here as the country has got an advantage of 'quality', he said.

He said that the Mahindra group has initiated its new SEZs during recession to show its confidence in country's future growth.

On February 26, Obama in his maiden budget speech had said that the US government would do away with tax breaks for firms outsourcing jobs to overseas destinations, including India. At the same time, the administration would be providing tax relief to 95 per cent of American working families.