BPO Backlash

[Guest]

<b>Current BPO Wave and Its Timing</b>
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<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->What Can India Do to Alleviate the Situation? 
BPO outsourcing drive to India cannot be slowed. The latter will impact on the business profitability. I am assuming that by the end of this year, American economy will start churning out jobs; hence short-term criticism of outsourcing will be over. From India’s point of view, this is a great opportunity. But this opportunity is full of obstacles. These obstacles are to be overcome by undertaking US friendly acts, like: 

A.     Trade, which currently favors India, should be balanced. India should begin purchases of American goods and services much more keenly. 

B.     Indian companies beneficiaries of the BPO wave should begin American operation, employing American public. 

C.     <b>As a gesture of goodwill, India could make a contribution to the American effort in Iraq, after the UN begins the democratization of the country. </b>

Who Could Spoil the Party? 
With careful diplomacy, the West has turned around and become a friend of India. This took 50 years, but it has happened. If you believe the President of USA’s word then India is a strategic partner of USA. A few hiccups from time to time will test this partnership, but overall pace has been set such that India and US both need each other. This partnership at the moment has not resulted in a formal document of an alliance but the writing is on the wall i.e. India and US will depend upon each other for security in Indian Ocean Littoral states and act to counter any Chinese influence in the region.  

But any relationship has to go through the test of time. Some situations, which could spoil this party, are: 

* US dramatically restrict outsourcing by law.

* India does not act on US request to further tighten high tech exports in nuclear and missile technology.

* Indian costs rise too fast and become prohibitive for outsourcing.

*  <b>Dramatic change in the make up of the government after April 2004 Elections in India</b>.

  * Under any political compulsion, US begin pulling back outsourced jobs.

  *  <b>No Indo-Pak settlement is reached; hence threat of war is constant on the sub-continent. </b>

All these will have a negative impact on the American psyche, which at the moment is set against outsourcing. 
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<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Conclusion 
There is only one-way i.e. India has to tie up more with US to avoid outsourcing backlash any further. The current backlash is a direct result of sluggish economic growth and election year politics. Outsourcing would not be an issue as soon as job growth improves and retrained personnel find better and more productive work. India has to prevent anybody spoiling this party with skill and political smartness. Other areas of outsourcing are waiting to be explored. Soon Indian and US economies will be intermingled to such an extent that each is dependent on the other<!--QuoteEnd--><!--QuoteEEnd-->