Information technology minister Arun Shourie used a conference of Asian IT ministers taking place in Hyderabad, India, to ask countries in the region to put up a united front against moves to stall offshore outsourcing.
"As we are becoming strong in technology, backlash has started, particularly in the US, Europe and Australia," Shourie said. "All of us should tackle this in a concerted and united manner."
More than 30 ministers from Asia have gathered to discuss issues like the digital divide, e-governance and the implementation of broadband. India is using the occasion to showcase its prowess in information technology such as IT products for developing countries.
Recently, Indian industry lobby groups decided to take the outsourcing debate to political leaders in the United States. The National Association of Software and Services Companies will hold its next board meeting in New York and later confer with political leaders.
Last week, a large congressional group was in Hyderabad -- fast developing into an IT hub and imitating the success of Bangalore -- and other Indian cities to get a firsthand understanding of the technology industry in India. N.Y. Congressman Joseph Crowley, who led this group, suggested that Indian companies should create jobs in the United States to fight the backlash.
Some US think tanks, too, feel that the country should keep its doors open so that technology companies could remain competitive in the global economy. The Computer Systems Policy Project, backed by companies including Intel, Dell and Hewlett-Packard, last week said that "countries that resort to protectionism end up hampering innovation and crippling their industries, which leads to lower economic growth and, ultimately, higher unemployment."
The Indian minister said protectionism is a major issue facing trade talks under the aegis of the World Trade Organisation as well. "They can not expect us to go on opening our markets to their goods, while protecting their own markets and services," he said.
Talkback
Worried about the backlash? My heart bleeds for them - the sooner the public organises against the export of skilled jobs, the better
Outsourcing is OK as far as it goes. What people forget istt's the 'toe in the door'.
First call centres and the like. Then the next rank up, and so on until they have the knowledge and infrastructure to compete with their former customers insurance companies, banks, whatever.
Today most manufactured goods are being sourced in China, leaving the west relying service industries. What happens when these disappear to Bangalore? Low corporate tax rates, could proove just as bi a draw as low labour costs!
How clever of India to try and recruit other Asian Countries to their cause. However, Taiwan, Singapore,The Philippines and others, all stand to loose if the giant is allowed to eat all the cake.
It is really surprising to know that India is fighting the outsourcing backlash. In my personal opinion, India has made the most common mistake which we learned not to do in kindergarten:"Not to put all eggs in one basket". India's economic growth and foreign reserves has been dominated by its IT services alone. For the kind of wisdom that Indians carry, it should have realized to have a balanced growth. Now they are concerned. Can Thailand, Singapore, and other east asian countries start a similar alliance if U.S. auto makers decide to close their manufacturing facilities there which they opened decades ago to exploit the cheap labor?