Powell Assures India IT Outsourcing Will Continue

Secretary of State Colin Powell said Tuesday the Bush administration was not behind efforts in Congress to legislate away the outsourcing of IT jobs to India.


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According to the New York Times, Secretary of State Colin Powell said the Bush administration, while concerned about job loses in the U.S., believes the outsourcing is just a natural outgrowth of globalization and the best way to mitigate the problem is to encourage India to open its markets to U.S. investments, goods and services.

Powell's comments came in response to audience questions indicating Indians are very concerned that Congress will pass legislation that negatively impacts growth in the country's burgeoning IT outsourcing sector.

"Outsourcing is a natural effect of the global economic system and the rise of the Internet and broadband communications," said Powell. "You're not going to eliminate outsourcing; but, at the same time, when you outsource jobs it becomes a political issue in anybody's country."

See the complete story by NYT's Steven Weisman (registration required).

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