BUSINESS

`Outsourcing outcry, a temporary aberration'

HYDERABAD, APRIL 24. The outsourcing outcry seen in the U.S. is a case of `classical political grandstanding' by the presidential candidate, John Kerry, who has been questioning `patriotism of outsourcing companies', feels Ganesh Natarajan, Chairman of the National Association of Software and Services Companies' (Nasscom) SME Forum for western India, adding that `ultimately laws of economics will always prevail over politics'. He was speaking at a meeting on `Global outsourcing trends and opportunities for SMEs', organised by the Nasscom SME Forum here on Saturday.

Mr. Natarajan said the reality was that offshoring companies were getting work done at low cost and high quality levels in India, thereby adding value, and becoming more productive, profitable and prosperous. Of the 127.9 million jobs in the U.S., he said only 14.1 million can be offshored theoretically. Referring to potential employment, he said of the 22 million new jobs to be created by 2010, a maximum of two million could be outsourced. And even if two million come to India, it will not create a dent in the U.S. economy.

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