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
- Making the Move to a Cloud-Based IT Service Management (ITSM) Platform Today's mature cloud-based ITSM solutions can give you the flexibility and agility you need-without sacrificing security, stability or performance.
- A Practical Guide to Understand and Benefit from the Consumerization of IT This guide explores the realities of IT Consumerization to define challenges and opportunities. Learn best practices and get actionable recommendations.
- The New IT Explore enhanced productivity for IT staff, and seamless integration across IT operation management systems. Download now.
- The Perfect Combo: ITIL, ITSM and Social Media BMC explores how best-in-class organizations are leveraging these to drive user satisfaction and organizational success.
- Live Webcast 5 Steps to Assuring Quality of Experience In order to align monitoring and management practices with the true demands of the business, IT professionals must expand beyond traditional comfort zones...
- Live Webcast Master the Changing SAP Landscape with Performance Management SAP landscapes are not getting simpler. Gradually, business processes that used to be contained on a single SAP system now involve a range...
- Exploring Network Management Challenges and the Benefits of Outsourcing New research conducted by IDG explores the network management challenges that IT and telecom leaders face and how they are dealing with them....
- Cloud BI in Action: Recorded Webinar of Customer, Kony, Inc. See how Kony, Inc., a leading enterprise mobility company, is using TIBCO Jaspersoft for Amazon Web Services and Redshift to achieve embedded analytics...