09 February 2004 22:58
Do Not Ignore Backlash Issue: Premji
Take the backlash issue seriously, says Wipro chairman Azim Premji, who was speaking at a seminar organised by the
All India Management Association (AIMA) and Bombay Management Association (BMA). Addressing management students here, Mr
Premji explained that when software services were being outsourced, it was done surreptitiously. This was done because
it was the requirement of that time. The industry then stood witness to a vast number of layoffs. Today it is witness to
the business process outsourcing (BPO) sector and the issues that surround it. This, he empahsised should be taken
seriously. The noise around this in the US specifically is because of the elections. But in reality, the world has lost
a lot more jobs in consolidation or acquisition of companies. This does not imply that consolidation or acquisition
ought to be banned. Globalisation, he pointed out, is a two-way street and if India is good at something then it will
excel in it. Mr Premji pointed out that while the US is continuously stating that India should not send any more
engineers to the US, it is asking for the retail market in India to be opened up, again as part of its globalisation
efforts. He explains that if the retail sector in India is opened up, then it would imply Wal-Mart setting up shop here.
This would mean that opening one Wal-Mart store would imply displacing 400 domestic retail stores. Azim Premji Moving
on, Mr Premji added that the financial sector which has been a pioneer in outsourcing has not only managed to save a
substantial amount but the cost of operations of the companies in this sector in the US has gone down as compared to
companies in the UK. Furthermore, the companies in this sector in the US have been able to add 125,000 jobs all because
of outsourcing. He says "IT is important. While issues can be empathised with, they cannot be ignored. And the
extreme demonstration of double standards by the US is unforgivable." According to him, the biggest devastation to
success is complacency. The BPO industry does have immense potential. But it should not be taken for granted.
Competition is emerging both in the software services sector as well as in the BPO sector. China, for instance, is
putting in place a host of initiatives in the English-speaking arena. Philippines too could be another threat in the BPO
sector, along with Vietnam and Russia, he pointed out.
[Financial Express] |
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