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SBL - Article by Don Suseelan

The United States of America Presidential election is taking place this November and all around the globe people are looking forward to see who will win.

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $46,000(according to the CIA factfile). In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace.

Offshore outsourcing was a hotly contested topic in the 2004 U.S. presidential elections. What about the 2008 election? Not so much. Offshoring, so far, has not made it to the shortlist of points being debated by the would-be leaders this year.

Still some controversy has been raked up especially by president hopeful Barrack Obama who launched a tirade against companies that outsource jobs to India and China.

“We're here because there are workers in Youngstown, Ohio, who've watched job after job after job disappear because of bad trade deals. They need us to end those tax breaks that go to companies that ship jobs overseas” said Obama.

However the official US position is very different and the government has made it clear it is looking forward to improve ties with the Indian trade establishment.

“It is very important for the US to come to grips with the opportunities and challenges of globalization. US continues to invest in India and Indian investment has been critical to the US and so we are open to the world and we are open to India," Mario Mancuso, US Under-Secretary for Commerce said.

Obviously the BPO industry in India is least concerned about who makes it to the top position because they see outsourcing as an inevitable part of a globalized era and as an irreversible process.

Abhilash M. Pillai, Assistant Manager–IT, SBL, says “As for the comments of some presidential candidates that people in US are losing their jobs due to offshore outsourcing, they need to think why US companies are outsourcing their services? It is because they find the right staff with expertise at the right cost. As far as cost is concerned I do not agree with the point that outsourcing only depends on cost. US companies outsource their work for one more reason - they get their work delivered at the right time with the right output they expect.”

"I don't think it will affect our business because basically the (western) companies will be looking at their profits, the bottom line and savings and obviously the benefits that will accrue to them, so it should not affect us. It is my opinion because ultimately it boils down to this because the (US) government might make policies to favors their people but basically its demand and supply games that the whole world is following and they (US firms gain advantage with better (profit) margins through outsourcing ," said Arun Babu, a BPO employee.

"Especially the health sector is the most expensive sector as of now in the US so they just cannot take back the offshoring of business. They have been getting a strategic advantage by outsourcing work to other countries and they can't afford to lose it. If American wants to operate across the globe then they have to continue outsourcing as in the absence of it they can't be a global leader," said Murli Krishnan, Director, Medtek.

In fact reports show that even companies which towed a conservative line are now willing to experiment by going offshore to gain a competitive edge. This certainly shows how deeply the concept of globalization and outsourcing has become entwined in the fabric of today’s business.

India is still the leader as the first choice for an offshore destination, ranking at the top of A.T. Kearney’s 2007 Global Services Location Index and claiming an estimated 11.5 percent share of the global market, according to estimates from research firm XMG. India’s advantages remain its talent pool, English-speaking population and government support.

The field of offshore outsourcing has changed so much – it has evolved from a little-used practice to a mature industry in less than a decade. And plenty of hopeful change still lies ahead for the Indian BPO industry.

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