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Outsourcing will continue despite odds: Corbett

Fakir Chand in Bangalore | October 15, 2003 15:13 IST

Outsourcing of IT services and business processing from India will continue even in the face of stiff opposition and job losses in the US in view of the cost and quality benefits US firms enjoy.

Michael F Corbett & Associates president and CEO Michael F Corbett told rediff.com in Bangalore on Wednesday that the ongoing protests against outsourcing and offshoring would continue till the next presidential elections in the US due to rising unemployment and sluggish economic growth.

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"Noises and voices made against outsourcing of tech services from India or other countries will continue to be heard. The pitch will be raised in the run-up to the US presidential elections next year as high unemployment levels are causing concern in view of the sensitivity involved in the backlash," Corbett stated.

At the same time, Corbett expressed confidence that should the US economy pick up momentum in the next 12 months, then these protests would not only subside, but lead to increased outsourcing and offshoring by US firms.

"The cap on H1-B and L-1 visas, which have been reduced since this month would have to be raised as demand for high skilled jobs will rise again. Those states, which are planning anti-outsourcing laws may have to reconsider the measures," Corbett asserted.

As a global phenomenon, outsourcing of IT services has become the order of the day. The manufacturing sector the world over has already reaped the benefits of such strategy over the last two decades. The services sector cannot lag behind. It has already tasted the fruits of sourcing services, technologies, products from countries like India.

Corbett is in Bangalore to participate in the "India Outsourcing Summit, 2003", which is being held for the first time as part of the Outsourcing World Summit Conference Series that began in the US in 1998.

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