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Home > Business > PTI > Report

Outsourcing not a zero-sum game: US

February 03, 2005 19:29 IST

Contrary to domestic apprehensions, the US said on Wednesday outsourcing was not a zero-sum game and it has in fact benefited from other countries' investment by way of job creation and economic growth.

"We have benefited by attracting foreign investment to US. They create jobs for US people too. Last figures I saw (said) there were many more jobs created in the US from foreign investment than that have been lost when US companies invested in other countries," Ambassador David Gross, US coordinator for international communications and information policy in the state department, said in New Delhi.

"Our view is these economic efficiencies have worked to our benefit. We do not see it as a zero sum game", Gross added.

Asked if the outcry over outsourcing had died down with the return of Bush administration, he said, "I don't know what the future will be. I think that these are the sort of issues that are always sensitive to every country.

It is perfectly understandable why they are sensitive. Whenever anybody loses a job, be it in India, US or Europe, there is a political and human dimension."

"The question is what is to be done. The decision the Bush administration has made to date is to stay on the side of economic efficiency as we have found that benefits the US."

US companies which outsource to low-cost countries like India, had to face a lot of opposition at home as there was alleged fear of job loss in the home country. The opposition reached its peak during the US presidential election when John Kerry, the Democratic candidate, campaigned against it.

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