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US not doing favour by outsourcing jobs : Indian Minister

India will formally convey its disappointment to the US over the ban imposed by the state of Ohio on offshore outsourcing at the high-level bilateral Trade Policy Forum meeting in Washington later this month.

"It will be on the agenda. I will raise the issue at the TPF meeting there definitely," Commerce and Industry Minister Anand Sharma said here.

Sharma and US Trade Representative Ron Kirk will co-chair the September 21 meeting of the Trade Policy Forum (TPF), which is the principal trade dialogue between the United States and India.

While the Commerce and Industry Minister did not spell out specific concerns, sources said the Indian side would convey its "disappointment" over Ohio's ban on offshore outsourcing by government departments.

Sources said India would not like to adopt a "confrontationist" stand ahead of President Barack Obama's visit to India in November.

It is in this backdrop that conciliatory voices were heard from the Commerce Ministry, even though Commerce Secretary Rahul Khullar said on August 17 the H1B and L1 visa fee hike by the US was not WTO-compatible and India "cannot keep quiet".

While the USD 50 billion software export industry does not expect to be hurt financially by Ohio's decision, the development has upset it.

Apex software body Nasscom has described the ban as a "discriminatory" trade barrier.

Road Transport Minister Kamal Nath said outsourcing is an economic issue and "in the end, it is not something... they (the US) are doing us a favour. The US companies, to remain competitive, must be able to outsource."


Read more: US not doing favour by outsourcing jobs: Kamal Nath - The Times of India http://timesofindia.indiatimes.com/business/india-business/US-not-d...

Tags: :, Indian, Minister, US, by, doing, favour, jobs, not, outsourcing

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Permalink Reply by Jim Hill on September 9, 2010 at 9:36pm
Offshore outsourcing has become much more of a visceral, personal issue than just political or economic, especially in those USA states that have been hit the hardest by the economic downturn, like Ohio and Michigan. Anyone who has been to the major cities in Ohio over the last 5 years can see the impact of lost jobs. Everyone that I know in Ohio has multiple family members who have been devastated by outsourcing and the economy, and that lingers as a personal issue for many. It is not business. When a child can not go to college because their father's job was outsourced, that strikes home rather hard. I suspect that what may happen, especially if we have a double dip recession, which seems likely, is that more and more states will follow Ohio, and very quickly. Although I am in the outsourcing business myself, I still am not all that convinced that it is always a sound business decision from a much broader social and cultural perspective. Sure, a business saves money. In biology there is a term called a "trophic cascade" which means that what appears to be an isolated and even a beneficial event is often the catalyst for much bigger domino effects, usually dominos that are profoundly negative and that no one see until it is too late. Like global warming. Or introducing rabbits into Australia. Or kudzu in the South. Seemingly small isolated issues, but actually catastrophic results that can be difficult if not impossible to stop once they are started.

AdminPermalink Reply by Rakesh Patel on September 9, 2010 at 9:59pm
Jim, thanks for your input ! you were able to put things in the right perspective. I believe its an emotional issue and people (on both sides) should refrain from making inflammatory statements. Thanks again for your honest opinion !
Permalink Reply by Rajnish on October 4, 2010 at 12:09pm
Ministers must refrain from using language that need not be used, Kaml nath is a responsible member of the ministry, and must know how critical US is to our BPO business.These numbers of 20 Billion dollars etc have happened all thanks to US outsourcing, therefore we should exercise restraint and not get to reflect our ego,high handedness or arrogance while putting across our concerns about being discriminatory trade barrier in world trade.

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