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Home > Business > Corporate Headline > Quick Company Info

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US states' BPO ban not to hit India

February 11, 2003 18:32 IST

Amid reports of a few more US states thinking of a legislation for restricting outsourcing to India after New Jersey, a leading research firm on Tuesday said it would not be easy for such Bills to be passed as business would eventually move where there is cost advantage.

"There is not much going to happen on this front as no law can prevent businesses moving to the most cost advantageous regions and I personally do not think the Bill (if and when they come up in other states like Maryland, Connecticut, Missouri and Wisconsin) will be passed", Ravi Sanghal, head, IDC India, said.

Asserting that business pressure would be so much that such moves are unlikely to happen, he advised Indian industry to take up some public relation exercise to create the right approach for outsourcing to India in these states.

"These are all artificial boundaries of free trade under globalisation and the fears regarding job loss in local areas should be warded off by a strong PR exercises by the Indian software industry," he said.

Sameer Kochhar, CEO Skoch Consultancy, said the proposed ban on outsourcing may not have a bigger impact but there are larger issues involved which amount to creation of artificial barriers in the free movement of labour and trade which is against the WTO principles.

"There is a Bill pending in US banning solicitation of trade through phone calls which if passed would create havoc for the Indian call centre industry as it is based on telephonic consultancy and information, he said.

As of now, a Bill preventing government outsourcing contract to India is currently pending in New Jersey.
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