'Outsourcing' from India to continue
Top Brit trade ministers and firms have told a CII team they will continue outsourcing manpower from India.india Updated: Dec 27, 2003 23:22 IST
A delegation of Indian industrialists visiting Britain has received a "positive response" from the UK government as well as some British companies over "outsourcing"manpowerfrom India, Director General of Confederation of Indian Industries (CII) Tarun Das said in London on Wednesday.
"We had a positive response from leading British companies and the British Government is also saying the same thing that outsourcing in India is beneficial to the companies," Das said on Wednesday night.
In the latest case, David Jafferies, Chairman, Costain, informed him that his company has employed 150 people in Mumbai to do the back office work.
Though trade unions are concerned about the loss of jobs, British companies want to use the Indian Back Office services as it improves their profitability and competitiveness.
On the other hand, Tata Consultancy Services (TCS) have set up their company in the UK providing jobs to 1,200 people, Das said.
During the discussions, the British companies have argued that it was better to lose a couple of hundred jobs and save majority jobs rather than close down.
"We had very good response from the Government during our discussions with Mike O'Brien, Minister of Trade and Industry and Foreign and Commonwealth Office; Petricia Hewitt, Secretary ofTrade and Industry; and Sir Stephen Brown, head of the British Trade Commission," Das said. More
Most of the Indian entrepreneurs were locating their companies in the UK in order to service the clients in Europe and America out of UK.
The delegation led by Anand Mahindra, President, CII, suggested that British companies must step up their sales efforts as India imported goods from all over the world. Like the Chinese market, the Indian market was also expanding very fast, he said.
Mahindra has invited Sir Stephen Brown to visit India to evaluate the prospects of exports and he has accepted the invitation.
The 15-member delegation which concluded its three-day visit last evening included NR Narayana Murthy, Mission Co-leader and Co-Chairman, Indo British Partnership and Chairman and Chief Mentor Infosys Technologies Limited, Jamshed J Irani, Director, Tata Sons Limited.
Ratan Jindal, Vice Chairman and Managing Director, Jindal Strips Limited, Sunil Bharti Mittal, Chairman and Group Managing Director, Bharti Enterprises and Gautam Thapar, Vice Chairman and Managing Director Ballarpur Industries Limited.