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`Outsourcing must not be an India-specific issue for US'

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PUTTING IT STRAIGHT: Mr Sunil Bharti Mittal, CII President, addressing presspersons in New Delhi on Saturday. — Kamal Narang

New Delhi June 9 The Indian business community has urged the US not to make outsourcing an India-specific debate.

Outsourcing of jobs to India is likely to become an issue in the coming US Presidential elections, though Indian industrialists have impressed upon US officials and Senators that a trend for reverse outsourcing by Indian companies has begun and that the issue should not become India specific, said Mr Sunil Bharti Mittal, President, Confederation of Indian Industry.

Mr Mittal has just returned from the US after heading a business delegation that explored several key issues between the two countries.

"There has been a trend of reverse outsourcing recently. IBM has bagged $1.1 billion order from Bharti Enterprises. Other telecom companies are also looking at outsourcing to the US," Mr Mittal said while addressing a press conference in the Capital on Saturday.

"We also tried to explain that India could do very little about US companies coming to India and setting up huge facilities," said Mr Mittal, adding that at the same time Indian companies are increasingly investing in the US, resulting in job creation there.

The delegation pointed out that telecom equipment, routers and computers that are being used in call centres in India are US-made and thus outsourcing is helping the US economy.

According to CII estimates, there will be requirement for 17 million IT and knowledge professionals by the US in the coming years.

On the issue of H-1B visas, Mr Mittal said: "We also raised the question of movement of persons, which is a major issue for India and must be resolved". Many US MNCs are setting up operations and offices in India and would be hiring more people. Therefore, there should not be restrictions on H-1B visas. "In fact, the Indian knowledge professionals are firing up US research and their movement should be eased," he said.

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