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Offshoring bill is an unfortunate move by the US government

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DQW Bureau
New Update





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As the US and India work tow-ards deeper trade and political relations,

will this bill hamper the activities in any way?



The US India relationship is strong. In any trade or economic relationship,

such issues do come up. In fact in some ways this reflects the strong

interdependence of the two economies and the deep trade ties. The challenge is

to resolve this in a manner that is beneficial to both sides and also seen to be

beneficial to all. This is possible and will happen.

The bill is unfortunate and seems to address the needs of a domestic

constituency. Elections may be one of the reasons behind the bill, but may not

be the only one. However it only impact a small portion of the business.

Can it be a blessing in disguise for the Indian BPOs, as

it is not strategically correct to get business from a single country?



The bill notwithstanding, the Indian IT, ITES and BPO industry global market

share is too dependent on a few Countries. There is no doubt that there is a

need for diversification and the need to develop new markets and new regions.

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Is this against the global economy concept? If yes, can we

raise a voice against it?



For the past many years, India was looking to the US as a leader in the

concept of globalization, market reform and deregulation. This move coming on

the top of other protectionism measures seem to lead to questions within the

minds of many. While in the case of manufacturing, there is always the WTO to

fall back on; and this happened in case of the 2001 steel tariffs, the GATS

negotiations are not as advan-ced. CII will continue to addr-ess this issue with

policy markets in the US and other countries.

Is India a potential threat for developed countries? Especi-ally

given the fact that we have both–manpower and quality deliverables.

India is not a threat. This is not about threat or displace-ment.

It has been definitively proved that outsourcing is good for the host country

and good for global development. India is actually an ally in imp-roving

productivity, enlarging markets and creating value added jobs.

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CII believes that the current mindset against outsourcing

will slowly but surely be replaced, once the true benefits of the process are

fully understood and more importantly, communicated by policy makers to their

constituents.

What do you think India can do as a part of the global

economy?



To address the issue against outsourcing, a lot is being done already. This

has to be contin-ued. Policy makers have to be sensitized. As Minister of Com-munications,

IT and Disinvest-ment, Arun Shourie said that we have to come together with

other countries and collectively take up this issue. The benefits of outsourcing

need to be communicated. Those against this must be engaged in discu-ssions and

debate in a non-controversial manner. Compa-nies that benefit must be encouraged

to communicate the benefits.

Can we foresee similar regula-tions from other developed

countries?



It remains to be seen how other countries will react. In the short term, we

may perh-aps see some other policy initiatives given the large number of

countries that are going to the polls as it may seem to be a measure to protect

jobs. In many cases the regulations in the US are not applicable. Even if so,

this would be only short term.

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