British firms' to continue outsourcing despite protests

Tuesday, 09 September 2003, 19:30 IST
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NEW DELHI: British companies will continue to outsource technology jobs to India to cut costs despite protests by unions, says Alderman Gavyn Arthur, Lord Mayor of the City of London. "If a company's prosperity and a company's efficiency involves the use of outsourcing, then that must take place for the company's good," Arthur told IANS in an interview. Arthur, who is on a 10-day visit to India, is the ambassador and spokesman for financial services industry based all over Britain. The lord mayor has a much wider business role - working for Britain as a whole, supporting and promoting the city of London, the world's leading international financial centre, both at home and abroad. "There have been protests but nonetheless outsourcing does take place because at the end of the day the company has got to remain solvent, profitable and efficient. They have look after their shareholders' interest as well," he said. India's vast pool of English-speaking and cheap manpower, educational system and training programmes have helped transform the country into a global outsourcing superpower. The rapidly growing BPO industry has virtually turned the country into an electronic housekeeper to the world, taking care of a host of routine activities for multinational giants. More than a quarter of Fortune 500 companies like General Electric, American Express, British Airways, HSBC and Citibank are shifting their back office operations to India. India is now beginning to face labour backlash in the West over job outsourcing, which unions argue results in large-scale job losses in their countries. Some American states are considering banning the outsourcing of public sector contracts to India in the face of growing opposition from labour unions. British insurers Aviva and phone company BT Group also faced labour unrest over their decision to call centres in India to cut costs. "There may be a protest here, there may be a protest there but nonetheless outsourcing is a fact of life. This is not something in which the government tries to interfere," said Arthur. "In any country, you are always going to get domestic groups, who look after their own interests and that is understandable," he added. "We have a huge amount of outsourcing in India. It is not outsourcing at a menial level, it is outsourcing using highly educated, technically efficient workforce."
Source: IANS
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