The GE Chairman, Mr Jeffery R. Immelt, on Monday chose to diplomatically tread the middle path on politically sensitive issues of outsourcing and protectionism.

Even as he admitted to being a proponent of “globalisation”, Mr Immelt pointed out that he did not see any harm in American CEOs caring about long term health of the American market and American worker.

“…I think you can do both,” he said.

Asked about his views on outsourcing and protectionism, the GE Chief asserted that the long-term focus in the US has to be one of competitiveness and driving the conditions in which jobs are created.

He went on to add: “Every Indian CEO cares about his own country and its workers. So I don't think there is anything wrong with American CEOs caring for their own country, it is a good thing,” he said.

He further stated that while GE had about 130,000-140,000 people working in the US (with acquisitions), it was probably bigger outside the US.

One of those who adopted the Indian offshore model early, GE set up its own captive BPO in Gurgaon called General Electric Capital International Services or Gecis way back in 1997.GE later sold 60 per cent stake in Genpact to General Atlantic and Oak Hill Capital in 2005, hiving-off Genpact into an independent business. GE is still a major client to Genpact, outsourcing services in customer service, finance, IT and analytics among other back office functions.

During 2010, GE accounted for 38 per cent of Genpact's total revenue, while 62 per cent came from servicing global clients (non-GE clients). In fact, GE revenues increased seven per cent in 2010, due to an increase in procurement sourcing, finance and accounting, and analytics service offerings. In the fourth quarter, GE revenues increased three per cent sequentially, for Genpact.

Mr Immelt said that already a lot of the top companies had locations in the US, and the trend will continue.

Related Topics
comment COMMENT NOW