Thomas J. Donohue

NEW DELHI : Americans opposing outsourcing are not aware that the process creates jobs and promotes trade, and their assumpti-ons are based on em-otions alone, according to Thomas J. Donohue, president and chief executive of U.S. Chamber of Commerce.

“The backlash aga-inst business process outsourcing is based not on facts but emotions and in some cases, on politics,” Donohue said here at an interactive meeting organized by the Confederation of Indian Industry (CII) on April 19.

A study by the chamber has revealed that outsourcing has, contrary to fears, created jobs and contributed to wealth creation for the companies and economy. “The outsourcing of computer hardware manufacturing during the last decade lowered the price of IT. As a result, its infusion throughout our economy and society increased rapidly. That made us more productive and it created millions of new jobs in computer services and the same thing is now happening with the sourcing of IT service jobs,” said Donohue.

The U.S. Chamber of Commerce has been leading a strong coalition to stop passage of a number of bills against outsourcing.

According to Donohue, historically companies have grown through outsourcing within and outside their countries for special or cheaper products. “I don’t know why we should want to curb outsourcing when it creates jobs, insourcing, encourages trade by companies to fulfil obligations under outsourcing contracts,” said Donohue, who was on four-day visit to India to interact with industry and government representatives to exchange views and see first hand the chain effects of BPO.

As part of efforts to boost bilateral trade with India, the U.S. Chamber of Commerce has entered into a trade development partnership with the CII to work jointly for one year to help small and medium enterprises (SME) build links with counterparts and big companies in the other countries. “This is the right time for a new wave of cooperation with India, particularly in SMEs,” said Donohue.