csua.org/u/5xg -> economictimes.indiatimes.com/articleshow/msid-478100,curpg-1.cms
MUMBAI: On Day 1 of Nasscom 04, speakers tackled the issue of outsourcing and how politically sensitive it has become in the US, because jobs are moving out of that country. But speakers from the US, including analysts, CEOs and researchers, all said they believed outsourcing was here to stay and that going offshore was the only way companies stay competitive. Diana Farrell, director, McKinsey Global Institute, said, People in the US are looking at it as a job issue. They are not economists and therefore, they dont necessarily see the whole picture. Whats going to happen is that offshoring is actually going to benefit US businesses even more than India. She said it was a profoundly new way of doing things and would change the structure of organisations. Offshore was about global wealth creation and integrating economies, she explained, adding that it would create more high-value jobs in the US than people could imagine today.
But she added that there were indirect benefits to the US, in terms of the import of US goods and services into India by Indian service providers, and so there was some transfer of profit back to the parent in the US. She pointed out that the Bureau of Labour Statistics was predicting a job gain of 22m in the US by 10, against a job loss of 2m due to offshoring. Steven Gruber, managing partner, Oak Hill Capital Management and non-executive chairman, EXL Service, a BPO company with operations in India said, Indian companies must worry about extreme legislation that might come out of the political battle to win elections in the US. This could be in the form of new banking regulations that ban sharing of customer data.
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