Offshoring bill an unfortunate move: CII

NEW DELHI: With the recent off shoring bill by the US government adding heat to the backlash issue, the government and various Indian industry federations are trying to address the issue. Experts are anxious of the fact that this might lead to a snowball effect. CII deputy general director Dilip Chenoy shares his concern about this new move with Shweta Khanna of CNS in an e-mail interview.

Even as the US and India work towards 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 a need for diversification and the need to develop new markets and new regions.

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 reforms 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; this happened in case of the 2001 steel tariffs, while the GATS negotiations are not as advanced. CII will continue to address this issue with policy markets in the US and other countries.

Is India a potential threat for developed countries? Especially given the fact that we have both--manpower and quality deliverables.

India is not a threat. This is not about threat or displacement. It has been definitively proved that outsourcing is good for the host country and good for global development. India is actually an ally in improving productivity, enlarging markets and creating value added jobs.

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 continued. Policy makers have to be sensitized. As Minister Arun Shourie said, 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 discussions and debate in a non-controversial manner. Companies that benefit must be encouraged to communicate the benefits.

Can we foresee similar regulations from other developed countries?

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

CyberMedia News Service