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Outsourcing, a business reality — Premji

BANGALORE AUG. 22. Outsourcing jobs from the U.S. to India, while an emotional issue making ``good newspaper copy'', was a business reality, said Azim Premji, Chairman, Wipro Corporation. Mr. Premji delivered the keynote address at a conference on IT organised by the Institute of Chartered Accountants of India, here, on Friday. The ``economic reality of outsourcing is different'', he said.

This year, the U.S. economy would save $11 billion from outsourcing to India alone. Indian IT professionals contribute $1.2 billion to the U.S. domestic economy including $350 million to the social security, he said. By 2010, IT jobs outsourced to India will be 7 per cent of the total IT jobs in the U.S. as projected by the U.S. Department of Labour, he said. By then the projected supply of 158 million IT professionals in the U.S. will fall short of the demand by 10 million jobs.

The Information Technology Association of America, with membership from 400 IT firms in the U.S. had set down a ``position paper'' defending outsourcing as a way of reducing costs. By outsourcing, companies were now implementing in software, the global delivery model that was used for manufacturing, 15 years ago, he said.

The one-day conference organised by the ICAI, would look at ways to keep CAs abreast of technology. The institute had introduced an Information Systems Audit Course for its 1.14 lakh members, recognised by the Indian government, a release said. CAs were performing systems audit in the banking, insurance and corporate sectors, the release said. — By Our Staff Reporter

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