Creating opportunities

New Delhi, Jan. 6: A group of US political leaders today urged Indian business leaders to be more proactive in sensitising detractors in the US who have been blasting India for spiriting away call centre jobs from America.

A team of US Congressional members today identified IT, Hollywood and defence as areas of opportunity for American businesses. They said that the recent diatribes against India over the relocation of IT jobs to India was a part of the rhetoric in the run-up to the elections in the US later this year.

They said the India-bashers were talking about the fear of losing jobs to India but there was no perceptible initiative to sensitise business and Congressmen about the opportunities that this would throw up for US firms.

Joseph Crowley, representing the Congressional Caucus on India and Indian Americans, said: “The opposition to outsourcing is part of the electioneering rhetoric, but it also reflects the sentiment of people who fear they will lose their jobs. To counter that, Indian companies should establish greater presence in the US and offer more jobs to Americans, as the Tatas have done.”

“Simultaneously, there should be more proactive initiatives from Indian business houses and chambers to explain the new business opportunities in India. Both countries are fighting the issue of protecting intellectual property rights. While there can be major bilateral trade not only in IT and defence, there can be opportunities in Hollywood, as we jointly discuss the issue of IPRs,” said Crowley.

An Icra report said India is likely to capture 56 per cent of offshore business process outsourcing business by 2006 with the demand for BPO services increasing at an annual growth rate of 50 per cent during 2004-06.

However, it warned that if the BPO backlash in the US continues, India will be able to capture only 42 per cent. The size of the Indian BPO market is likely to be $9-12 billion by 2006, employing around 4,00,000 people, says the report.

Commenting on the issue of India not taking initiatives to educate the US Congress members and businesses, National Association of Software and Services Companies (Nasscom) president Kiran Karnik said the association has already started meeting the US senators and Congress members, and will further continue it.

The Confederation of Indian Industry (CII) said it will soon examine the option of expanding the existing infrastructure in US and also to open a US-India business committee.

Speaking at function jointly organised by Nasscom and CII, Steny Hamilton Hoyer, minority whip of US House of Representative, said the recent peace initiatives in South Asia have may open up a business opportunity for the US business houses.