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Bush victory = more BPO: Survey

Meenakshi Ganjoo in Silicon Valley | October 29, 2004 13:13 IST
Last Updated: October 29, 2004 13:27 IST


Nearly half of the business and technology professionals quizzed in a survey conducted in Silicon Valley, said that offshoring will increase if President George W Bush is re-elected.

A Meta Group survey of 300 business and technology leaders and staff found that 46.7 of respondents think that more companies will use offshore outsourcing if Bush wins the presidential election.

Nearly 11 per cent said fewer companies will use it, and 42.6 per cent said it will have no impact.

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As opposed to this, only 14.2 per cent of the respondents said that offshoring will rise if Democrat candidate John Kerry takes the day. As many as 47.8 per cent said fewer companies will use it, and 38 per cent said that Kerry victory will have no impact, the online service CNET News reported.

But Meta analyst Stan Lepeak said neither Bush nor Kerry will have much effect on offshore outsourcing.

"Despite each party's position about the merits or ills incurred from offshore outsourcing, the fact is that offshore outsourcing is a manifestation of an ongoing and long-term economic evolution that will not be greatly impacted by either candidate," Lepeak said in a statement.

The outrage over outsourcing has grown over the last one year, partly fueled by election-year politics and business realities. While President Bush has refrained from commenting on the subject, his advisers have defended offshoring.

Businesses have warned that protectionist measures lead to lower economic growth and higher unemployment.

Kerry, on the other hand, has been more outspoken about the offshore shift. He plans to end tax breaks for companies that ship jobs overseas and wants federal contract work to be performed by American workers "where possible."

In its report, Meta Group argued that attention should be put on job training. The researcher also recommended tax and job-creation incentives and enhanced unemployment benefits "to address the transition period required for reskilling efforts."


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