NJ legislation on outsourcing not surprising: Blackwill

Friday, 07 February 2003, 20:30 IST
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BANGALORE: The New Jersey legislation prohibiting business process outsourcing (BPO) to India has not surprised U.S. Ambassador to India Robert Blackwill. The New Jersey Senate unanimously cleared a new bill, which prevents public enterprises in the state from outsourcing work, specifically to India, on December 16. Senator Shirley Turner had proposed the bill earlier this year. "It is not a surprising reaction at all," he said at a news conference here Wednesday. "In general, it's quite a positive development that American companies are outsourcing to India because of the quality." Asked for his reaction to the legislation that has caused apprehension in certain sections of India's burgeoning BPO sector, Blackwill said: "It seems to be the issue of job loss that any country thinks about. "There is some concern about shifting of jobs. But, the primary reaction to outsourcing in my interactions with the American companies has been the quality of service. "American companies have told me that they can serve their customers better by outsourcing to India". The New Jersey Senate's decision to pass a new bill that seeks to ban outsourcing of government contracts overseas, particularly to countries like India, has been received with caution by Indian IT companies. A section of the high-profile technology industry feels the promulgation of the law would not have an impact on profitability of Indian firms as very few companies undertake outsourcing activities for public enterprises in New Jersey. Others, however, fear it may set a precedent and spread to other U.S. states in the days ahead, casting a shadow over technology outsourcing, the trump card for India's technology sector. India's vast pool of English-speaking and cheaper manpower, educational system and training programmes have helped transform the country into a global outsourcing superpower in the last few years. India's software exports grew 29 percent to $7.5 billion in the past year to March 31, 2002, of which some 60 percent went to the U.S. The country's rapidly growing business process outsourcing (BPO) industry has virtually turned it into an electronic housekeeper to the world, taking care of a host of routine activities for multinational giants.
Source: IANS
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