The Hindu Business Line : British MPs' team backs outsourcing

MEMBERS of a British women MPs delegation on Saturday came out in support of outsourcing of jobs to India saying that the US Government has shown double standards by enacting its recent legislation against business process outsourcing (BPO).

Answering a question in this regard, one of the MPs, Ms Jackie Lawrence, said that the UK cannot operate under an umbrella of Government protection. It believed in taking a holistic and globalised view of matters. "We believe that the standards of living of your people will improve with outsourcing and their spending powers would increase — this will create a bigger market for our companies and our goods which in turn will create jobs in our country," she said.

"An improved Indian economy will benefit our economy and we do not feel that we are losing out," said the MP, who was on the delegation of `Labour Friends of India,' which is now on a visit to the city.

Her co-delegate, Ms Julie Morgan, however, felt that some real issues such as job losses were involved and there was a serious need to hold some more dialogues in this respect.

Elaborating on this point, she said that in her own constituency — Cardiff North — at least two companies — Tasco, a financial service company, and Serco, a trade enquiry company — were closing down since they were outsourcing their services to India.

"At least 530 jobs would be lost due to these two companies alone and there was a need to explain to the people the issues involved and how with the expansion of the UK economy newer opportunities would be created," Ms Morgan said. While the politicians should take initiatives in this regard since they had to face their constituencies, the companies, including the beneficiaries of outsourcing, should also do their bit to stop resentment from spreading, she added.

Ms Morgan was of the view that the US Government had exhibited double standards as much in raising tariff barriers against steel imports as on issues involving outsourcing. "They have to stop influencing the operation of market forces," she said.

Earlier the delegates said that under UK's high skilled migrant programme migration of skilled workers was welcome.

"With decrease in the number of skilled youths in Britain, we welcome this sort of migration," they said.

The interaction programme was organised by the CII (Eastern region). Earlier, the 10-member delegation also met the West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, where issues such as womens' representation, literacy and poverty were discussed.

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