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CII highlights benefits of outsourcing

Staff Reporter

Outsourcing should not become an India-centric debate

— Photo: V. Sudershan

ZEROING IN: Sunil Bharti Mittal (left), CII President, with S. S. Mehta, Director-General, addressing a press conference in New Delhi on Saturday after a six-member CEO delegation returned from the U.S.

NEW DELHI: Indian corporates have told American leaders and the U.S. business community that the outsourcing debate should not become an India-centric as it could hurt cordial relations between the two nations. Indian CEOs have also asked their American counterparts to realise that outsourcing was good for the growth of the U.S. economy, besides highlighting how the reverse outsourcing trend was benefiting major U.S.-based companies.

Skilled manpower

"Though there is strong undercurrent on the outsourcing issue in the U.S., many political and business leaders understand how crucial it is for the growth of the U.S. economy. By 2025, 17 million new jobs will be created in the U.S. and India, with its highly-skilled manpower and knowledge base, will become a good source,'' Confederation of Indian Industry (CII) President Sunil Bharti Mittal said here on Saturday.

Mr. Mittal, who recently returned from the U.S. after successfully leading a business delegation of Indian CEOs, said the Indian delegation told every senior political leader, U.S. government officials and business heads it met how the small issue was being exaggerated.

"We told them how the Indian professionals were giving a global competitive edge to the U.S. industry and adding value to its research and design activities,'' he added.

Conceding that outsourcing might become an issue in the coming U.S. presidential elections, Mr. Mittal said concerted efforts were being made by Indian industry to convince the U.S. leaders not to make it an India debate. "We told them how a reverse outsourcing trend has started with the U.S. companies bagging big orders in many nations. For instance, leading IT company IBM has bagged two major contracts from India's telecom companies, including Bharti Airtel. Moreover, to cope with visa problems, the U.S. companies have started their operations in India. And if this issue is not solved soon, more companies will shift their base, hurting the U.S. interests,'' he added.

The CII delegation also discussed the Doha trade talks with the U.S. leaders. "We impressed on the US side that the thrust should continue on the Doha Round. We also raised the issue related to the agriculture sector. We told them that more than 65 per cent of our population is dependent of agriculture. India needs to inject technology in agriculture and invited the US companies to invest in India's agri sector. We asked the US Government to cut subsidies in agriculture and impress upon EU counties to follow suit," he added.

"We also highlighted the importance of the Civil Nuclear Agreement for India and how crucial it will be for our energy sector, particularly when the demand is increasing rapidly. " Mr. Mittal said.

Bharti retail venture

The Bharti group Chairman, Sunil Mittal, on Saturday said his company's much-talked-about retail venture would kick-start early next year.

"Talks are on with our back-end partner Wal-Mart regarding branding and other issues,'' Mr. Mittal said while talking to media persons.

"We will open at least half-a-dozen stores early next year. We are already looking for space in different cities. Wal-Mart will provide back-end and logistics support and we will manage the front-end,'' said Mr. Mittal, who recently met Wal-Mart Vice-Chairman Mike Duke in Washington.

Mr. Mittal, who is also President of the Confederation of Indian Industry (CII), was recently in the U.S. as head of Indian CEO's delegation.

The Bharti group Chairman said the company's retail plans, which involved investment of $2.5 billion, were going as per schedule.

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