The Hindu Business Line : `Address issue of outsourcing with sensitivity'

THE Confederation of Indian Industry (CII) believes that a different communication strategy is needed to counter the protests in the US and other developed economies over outsourcing to India.

The communication strategy must display two characteristics - sensitivity and effectiveness - through marshalling of facts and figures in a cogent manner.

Making this point in an interview with Business Line here, Mr N. Srinivasan, Director-General Designate, CII, said it is working on precisely this kind of a strategy. "You will see us doing a lot of silent, behind the scenes work in this area, both in India and the US."

To a question, he pointed out that his understanding from the Secretary of State, Mr Colin Powell's, statement in India recently is that "there is no quid pro quo between outsourcing into India and India opening up its markets."

However, Mr Srinivasan said the concern about job losses in the US must be recognised. "We must address this issue with sensitivity and with facts and figures which show that outsourcing is really a win-win situation."

The whole thing, he felt, has been exacerbated by the election process in both countries. "I think it is an issue you need to resolve through talking and engagement with hard facts."

Mr Srinivasan, who will take over as the Director-General of the apex industry body in June, said, "If I were to stand up on the rooftop and say that India's IT sector is booming and the whole world is outsourcing to us, at a time when there is worry about outsourcing, we are inviting trouble."

"There is a time to lie low; there is a time to be soft spoken; there is a time to be seen as an effective and helpful partner; and there is a time to do things on our own volition. It is a strategy that we need to play well," Mr Srinivasan said.

According to him, outsourcing is something that has been going on for some time. Besides, Indian companies are also helping to create jobs in the US. For instance, Mahindra & Mahindra has two tractor assembling units in the US. The House of Godrej has taken over a call centre in the US and is ensuring that the jobs are retained by the US citizens.

Tata Consultancy Services plans to have its own set up in upstate New York. A number of other Indian companies are also looking at operations in the US. "We are adding value to the US economy and these are the facts and figures that we need to share with the American public. It is an issue of good quality and effective communication."

A number of companies in the manufacturing sector too were sourcing from India and why has this not raised the same kind of protests as the business process outsourcing sector? Perhaps it was the glamorous face of IT; perhaps the timing of the elections, Mr Srinivasan said.

"I think we have not realised early enough that communication of what we are doing was as important as doing what we are doing," he said and added that the outsourcing outcry has now brought that into sharp focus.

In a different context, Mr Srinivasan said 2004 is a unique year in that 73 countries are having their national elections. Each one of them has to pay attention to domestic issues, people's concerns.