Outsourcing means U.S. job creation is a must, Powell says
U.S. Secretary of State Colin Powell spoke at a news conference in India
IDG News Service - While outsourcing is a reality of the 21st century and inevitable, the U.S. must create jobs to replace those being lost, U.S. Secretary of State Colin Powell said yesterday in Delhi, India.
"Outsourcing invariably does result in the loss of jobs, and we have to do a better job in the United States, a good job in the United States, of creating opportunity in the United States to provide more jobs, so that those who have lost jobs will have opportunities in the future," said Powell at a joint news conference in Delhi with India's external affairs minister, Yashwant Sinha.
Powell's remarks come against the backdrop of a growing outcry in the U.S. against the loss of jobs by offshore outsourcing to low-cost locations like India. With an eye on cutting costs, a large number of U.S. companies are shipping jobs in software development, business process outsourcing and call centers to their Indian subsidiaries or to contractors in India.
"It is the reality of 21st century international economics that these kinds of dislocations will take place," said Powell, according to a transcript of the news conference. "And what we have to do is work to minimize these dislocations and provide new opportunities for workers. This is a major issue that we will be focusing on in the months ahead.
"When you put in place the Internet system, and when you put in place broadband capabilities, so that information and services can be moved around the world and connected to other parts of the world at the speed of light, people will take advantage of that kind of capability and that gives you the kind of outsourcing that we have seen here [in India]," Powell said." We have also seen outsourcing of jobs in the United States to Mexico, to China, to other parts of the world as the global world develops."
While emphasizing that the U.S. doesn't expect quid pro quo from the Indian government, Powell said there are opportunities for U.S. citizens to service Indian needs and expressed hope that India understands the need for reforms so that the U.S. can have more opportunities there. India should allow more foreign direct investment, continue with economic reforms and make it easier for U.S. businesses to enter the Indian market, he said.
Outsourcing of work overseas, commonly known as offshoring, has come under criticism from both legislators and workers' unions. The U.S. Senate in January passed an appropriations bill totaling $328 billion that contains provisions restricting government contractors from outsourcing work overseas.
The legislation has been sharply criticized
- Silicon Valley's 19 Coolest Places to Work
- Is Windows 8 Development Worth the Trouble?
- 8 Books Every IT Leader Should Read This Year
- 10 Hot Hadoop Startups to Watch
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Logicalis eBook: SAP HANA: The Need for Speed Without timely business insights, organizations today can suffer logistical, manufacturing, and even financial disaster in a matter of minutes
- Neustar 2014 DDoS Attacks and Impact Report For the third consecutive year, Neustar surveyed hundreds of companies on distributed denial of service (DDoS) attacks. The survey reveals evidence that the...
- Acxiom Case Study This case study, which focuses on Acxiom, explores how the company was able to secure employee data, reduce migration costs and boost productivity...
- Windows® XP Migration: Protect and Secure Critical Data With the end of the Microsoft Windows XP operating system's lifecycle on April 8, 2014, businesses are faced with the decision to migrate...
- Live Webcast Best Practices: How to Improve Business Continuity with Virtualization VMware solutions include a range of business continuity capabilities to help ensure availability for applications across your virtualized environment. Learn More>>
- Live Webcast LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users?
- Live Webcast
Enhance Your Virtualization Infrastructure With IBM and Vmware
Date: Wednesday, May 14, 2014, 1:00 PM EDT
Virtualization technology is now expanding beyond the server compute elements to encompass networking and storage...
- Top 4 Digital Signage Fails Join RMG Networks for a look at four of the most common reasons digital signage fails in corporate businesses. Learn about strategies to...
- Building Tomorrow's Infrastructure Listen to this podcast to discover how Crider Foods worked with PC Connection to update their IT infrastructure, while maintaining compliance and control.