The Hindu Business Line : India outsourced $11 b services: ILO

CONTRARY to the prevalent myth that India is emerging as one of the leading beneficiaries outsourcing, experts pointed out today that the country has, in fact, turned out to be the fifth largest economy in the world which had outsourced IT and business services to the tune of $11 billion by the end of 2003-04 to the US, the UK, Germany and Japan.

Stating this at a Seminar on Management of Contract Labour and Outsourcing organised by the Associated Chambers of Commerce and Industry of India (Assocham) here on Friday, Mr M. Bussi, Deputy Director, ILO Office for India, said India has spent roughly 2.4 per cent of its GDP in outsourcing businesses relating to IT and services as against the US GDP share of 0.4 per cent by the end of 2003-04.

According to Mr Bussi, "The leading business outsourcing countries such as the US spent $ 41 billion followed by Germany (at $ 39 billion) for outsourcing their business towards the end of 2003-04. Countries as Japan and the UK spent $35 billion and $16 billion respectively on outsourcing their business. China spent $8 billion, while the share of India was to the tune of $11 billion."

He said that this hard fact never got published in the media as it has been critically looking at the growing phenomena of BPO with an angle that outsourcing has led to the losses of jobs in the countries of outsourcing origin, an Assocham statement said.