02-04-2004, 11:47 PM
http://www.nytimes.com/aponline/technology...utsourcing.html
(subscription site - posting in full)
<b>Outsourcing Helps World Economy, Say Experts at Conference</b>
By THE ASSOCIATED PRESS
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Published: February 3, 2004
Filed at 8:21 p.m. ET
BOMBAY, India (AP) -- Outsourcing information technology-related jobs
to developing countries such as India will boost competitiveness and
slash costs, international software experts and government ministers
said Tuesday.
``We are not going to put up barriers to protect U.K. firms from
tough competition from India,'' British Energy Minister Stephen Timms
told some 900 delegates from India, Taiwan, Mauritius, the United
States, Canada and Britain participating in a global high-tech
conference.
``It's a great business opportunity for U.S. businesses because it
makes IT available for a wide swathe of U.S. companies,'' said Dan
Griswold, director of the Center for Trade Policy Studies at the
Washington-based Cato Institute.
More jobs in developing countries would build ``larger middle classes
and create a larger market for U.S. products in the future,''
Griswold said.
Participants in the three-day conference, which began Tuesday, will
discuss global economic growth from outsourcing, the impact of the
high-tech industry on the global economy and immigration trends to
developed countries.
``We know those Indian companies will benefit the U.K. economy and
strengthen it,'' Timms said.
He also said two Indian information-technology companies, Tata
Consultancy Services and Mastek, last week won a British government
contract to improve the IT infrastructure of the National Health
Service.
``A large part of the work on that contract will be outsourced to
India,'' Timms said.
The British government recognized that Indian industry could ``help
us in our task of improving and modernizing our public health
services,'' he said.
More than 450 Indian companies operate in Britain, which is India's
second-largest trading partner after the United States.
However, Indian software companies have been battling a backlash from
the United States and some other countries which fear India is
stealing jobs.
India is the leader among several countries which develop software
and handle back office work for foreign companies and government
agencies at a fraction of the cost in developed countries.
The trend, called offshore outsourcing, has resulted in thousands of
skilled jobs moving out of developed countries, including the United
States and Britain, to India, the Philippines and other Asian nations.
The U.S. Senate on Jan. 22 passed a bill that would prohibit
government contractors from shifting work overseas. Experts say the
bill, which awaits presidential approval, would have little impact
because less than 2 percent of India's US$10 billion annual software
export revenue comes from government-related projects.
The conference in Bombay is organized by the National Association of
Software and Service Companies, the Indian software and services
export industry.
<!--QuoteEnd--><!--QuoteEEnd-->
(subscription site - posting in full)
<b>Outsourcing Helps World Economy, Say Experts at Conference</b>
By THE ASSOCIATED PRESS
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Published: February 3, 2004
Filed at 8:21 p.m. ET
BOMBAY, India (AP) -- Outsourcing information technology-related jobs
to developing countries such as India will boost competitiveness and
slash costs, international software experts and government ministers
said Tuesday.
``We are not going to put up barriers to protect U.K. firms from
tough competition from India,'' British Energy Minister Stephen Timms
told some 900 delegates from India, Taiwan, Mauritius, the United
States, Canada and Britain participating in a global high-tech
conference.
``It's a great business opportunity for U.S. businesses because it
makes IT available for a wide swathe of U.S. companies,'' said Dan
Griswold, director of the Center for Trade Policy Studies at the
Washington-based Cato Institute.
More jobs in developing countries would build ``larger middle classes
and create a larger market for U.S. products in the future,''
Griswold said.
Participants in the three-day conference, which began Tuesday, will
discuss global economic growth from outsourcing, the impact of the
high-tech industry on the global economy and immigration trends to
developed countries.
``We know those Indian companies will benefit the U.K. economy and
strengthen it,'' Timms said.
He also said two Indian information-technology companies, Tata
Consultancy Services and Mastek, last week won a British government
contract to improve the IT infrastructure of the National Health
Service.
``A large part of the work on that contract will be outsourced to
India,'' Timms said.
The British government recognized that Indian industry could ``help
us in our task of improving and modernizing our public health
services,'' he said.
More than 450 Indian companies operate in Britain, which is India's
second-largest trading partner after the United States.
However, Indian software companies have been battling a backlash from
the United States and some other countries which fear India is
stealing jobs.
India is the leader among several countries which develop software
and handle back office work for foreign companies and government
agencies at a fraction of the cost in developed countries.
The trend, called offshore outsourcing, has resulted in thousands of
skilled jobs moving out of developed countries, including the United
States and Britain, to India, the Philippines and other Asian nations.
The U.S. Senate on Jan. 22 passed a bill that would prohibit
government contractors from shifting work overseas. Experts say the
bill, which awaits presidential approval, would have little impact
because less than 2 percent of India's US$10 billion annual software
export revenue comes from government-related projects.
The conference in Bombay is organized by the National Association of
Software and Service Companies, the Indian software and services
export industry.
<!--QuoteEnd--><!--QuoteEEnd-->