Home Updated on March 21, 2005  
Many Faces of Outsourcing ----- Part 4
Powell reassures India on technology jobs
By Steven Weisman

Policy

Secretary of State Colin Powell on his arrival in New Delhi, on March 15. Second from left is U.S. Ambassador to India, Robert Mulford. Others seen the picture were not identified. (Photo: AFP)
NEW DELHI: Secretary of State Colin L. Powell, encountering the other side of a tempestuous debate in the United States, sought to assure Indians on March 16 that the Bush administration would not try to halt the “outsourcing” of high-technology jobs to their country.

In a round of conversations with Indian leaders and college students, Powell found that the issue of the transfer of American jobs to India, known as outsourcing, by leading technology companies ---- was as emotional in India as in the United States.

But whereas American politicians have deplored the loss of such jobs, it was clear that the anxiety in India focuses on threats by some in Congress to try to stop the transfer by legislation.

“Do you support outsourcing or are you against it?” a questioner asked Powell in the session with students.

“Outsourcing is a natural effect of the global economic system and the rise of the Internet and broadband communications,” Powell said. “You’re not going to eliminate outsourcing. But at the same time, when you outsource jobs it becomes a political issue in anybody’s country.”

The secretary told the students what he had said to reporters earlier in the day ---- namely, that an appropriate American response to outsourcing was to press India and other countries toup to imports of American investments, goods and services.

Powell emphasized that one purpose of his trip was to explain to India that, because outsourcing had created a political problem in the U.S., India could help by lowering its trade barriers.

The secretary emphasized that he was making this request, not as a condition for the United States allowing outsourcing to continue, but because it was in India’s interest to be more

Powell said “it is the reality of 21st century economics that these kinds of dislocations will take place,” but he was quick to add that the administration would work to train people for new jobs.

The White House endorsed Powell’s comments. “The secretary made clear in his remarks that we are concerned when Americans lose jobs, and we are focused on creating jobs for American workers, and the best way to do that is tomarkets around the world, including in India,” said Claire Buchan, a spokeswoman for the White House. “He also talked about the importance of training workers for the opportunities of the future.”

[Powell said the number of U.S. workers affected by outsourcing to India was relatively small. But he acknowledged that “until we create new jobs for them and the economy adjusts to this new phenomenon within the economic system, it will be a political issue,” The Wall Street Journal reported. The Bush administration hasn’t backed any proposals to limit outsourcing of U.S. Jobs, but still to be considered are dozens of bills in Washington and in state legislature that further aim to hinder U.S. companies from outsourcing computer-programming, accounting and medical work to India.

Indian officials said they would not be bullied by threats from U.S. lawmakers. But there were signs the U.S. pressure might be having an effect. Foreign Minister Yashwant Sinha pledged that trade liberalization “is a process we are determined to move forward on,” though he denied it was the result of “pressures and counterpressures.”]

(By Permission, The New York Times)



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