Financial Daily from THE HINDU group of publications
Friday, Apr 30, 2004
Financial Daily from THE HINDU group of publications Friday, Apr 30, 2004 |
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Industry & Economy
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Industry Associations FICCI for low-key response to outsourcing backlash Richa Mishra
New Delhi , April 29 IT'S a misperception that Indian Business Process Outsourcing (BPO) players are being branded as `villains' in the US, feel the captains of Indian industry. According to Mr Y.K. Modi, President, Federation of Indian Chambers of Commerce and Industry (FICCI), as he recommends a low-key response to the backlash from Indian companies. "The backlash is largely on account of the high visibility this sector has attracted. Doing business in the silent mode is, therefore, the recommended strategy," Mr Modi, said. Elaborating further, Mr Modi, told Business Line that Indian companies should continue to focus on their work and maintain interaction with their counterparts overseas. The focus on quality should be so much that it becomes an exit barrier for foreign clients who will find it difficult to get the same offering elsewhere. ``The Indian industry should remain low-key. The more noise we make, the more we solicit a response. In fact, our associate trade bodies should take up the issues with their Government and not us,'' Mr Modi said. ``The current protests in the US have two dimensions — political and economic. We have to realise that the US is in election mode and with the unemployment rates touching 6 per cent in some States, job losses is bound to be on the political agenda,'' he said. The situation as it is unfolding is essentially transitory in nature, Mr Modi felt. The focus needs to be clearly on the economic advantages of outsourcing. The fundamental principle in a free market economy is that production moves to the lowest cost destination. This dynamic which played itself out in the manufacturing sector, is now being replicated in the services sector. Any move to stop or reverse the global redistribution of labour would prove counterproductive, Mr Modi said adding that this needs to be communicated to the parties concerned in a subtle yet strong manner. ``Business cases that bring out the advantages of outsourcing should be developed and disseminated,'' he stated. The cost benefit that India offers is not the main play. The real value lies in the quality of work delivered, he said.
More Stories on : Industry Associations | Outsourcing
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