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Home > Business > PTI > Report

'Invest in US to beat BPO backlash'

Dharam Shourie in New York | May 03, 2004 09:51 IST

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 the 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 United States in the last decade, they said.

More than 25 representatives of Indian American organisations attended a seminar on outsourcing organised by B K Agnihotri, Indian ambassador-at-large for non-resident Indians and the people of Indian origin.

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 United States and things would settle down after the elections, he said.

The Indian Americans were now contributing substantial amounts of money 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 outsourcing, need to show they were also creating jobs in the United States.

However, the consensus was that despite attempts by some American states to enact restrictive laws, outsourcing is unlikely to slow down as corporations look to the profits.

But the participants also felt that there was a need to ensure that India was not unnecessarily singled out when it is not the only country to which business is being outsourced.

Those attending the seminar included representatives of the Federation of Indian Associations, Indo American Political Forum for Education and South Asian Chamber of Commerce.

Most of the participants agreed that Democratic Presidential candidate John Kerry, who has made opposition to outsourcing the corner stone of his campaign, would reconsider the issue if he is elected.

The representatives decided to work in close cooperation and hold regular consultations to constantly review the strategy.

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