US uses BPO key to Indian market

US uses BPO key to Indian market

ECONOMICTIMES.COM[ WEDNESDAY, JUNE 23, 2004 11:54:05 PM ]
As the US job market scene brightens up, the US government has gone on record saying that it is not against outsourcing of jobs to India and other countries, despite the outcry against it in certain sections of American society. Rather, it would like an opening of markets in India to provide more jobs to Americans.

Assistant Secretary of State Christina Rocca said that the administration led by George W Bush has made it clear that "we do not oppose outsourcing."

"What we would like to see in exchange," she said, "is an opening of markets in India and other countries, which in turn provide more jobs in the United States . That is the way the policy has been formulated."

Rocca was testifying on June 22 before the Subcommittee on Asia and the Pacific of the House International Relations Committee on 'US Policy Towards South Asia.' The Committee was chaired by Representative James Leach (Republican).

She denied that there was any " India-bashing " on the part of the Bush Administration with respect to outsourcing of jobs.

"If there was more opening of markets in India, it would also help the furore die down because it would- by its nature - increase a lot of jobs here and elsewhere as well," Rocca added.

The issue of outsourcing was raised during the question-answer session by the Delegate from American Samoa, Eni Faleomavaega (Democrat), who wanted to know about the US administration's position on it.


"What are we talking about in terms of jobs? I mean, these are American companies now doing business with Indian companies and, in reading reports of the media, it seems like there's a whole problem that we're outsourcing, to imply millions of jobs. Is this India-bashing fair?" he asked.

Rocca said: "I don't have the latest numbers at my fingertips, and certainly India's not the only country to which the US companies outsource jobs.

"I think the US Trade Representative has made it clear that we do not oppose outsourcing. What we would like to see in exchange is an opening of markets in India and other countries, which in turn will provide more jobs in the United States. That's sort of the way it's been formulated. But I don't think you've heard any India-bashing on the part of the administration with respect to outsourcing of jobs."

Republican Congressman Thomas Tancredo, who had repeatedly tried to limit the number of visas given to overseas professionals in the US, said, there was an explosion in the number of L1 category visas granted to foreign companies to bring professionals.

"Already there are somewhere near a million people here as a result of the widespread abuse of visas," he alleged.

"Many of the people are brought here saying that they are uniquely qualified but the real reason is that they would work for less. The Indian Government has agreed to the case," Tancredo said.

Rocca assured the Congressman that "our Consulate people are taking the visa fraud issue very, very seriously."