Democrat Senator Introduces Bill That Could Hurt The Global Outsourcing Industry

Swarajya Staff

Mar 20, 2018, 09:40 PM | Updated 09:40 PM IST

A Call-Centre in Mumbai (Kunal Patil/Hindustan Times via Getty Images)
A Call-Centre in Mumbai (Kunal Patil/Hindustan Times via Getty Images)

In a move that could have global repercussions, Democratic Senator from Ohio Sherrod Brown introduced a bill in the United States Congress seeking to mandate call centres in countries like India and the Philippines to disclose their locations and give customers the right to ask for their calls to be transferred to an agent physically located in the United States, reports PTI. The bill also proposes that list of companies that outsource jobs be made and that federal contracts grant preference to those firms who don’t outsource.

For far too long, US trade and tax policy has encouraged a corporate business model that shuts down operations in Ohio, cashes in on a tax credit at the expense of working Americans, and ships production to Reynosa, Mexico or Wuhan and China. Jobs at call centres are some of the most vulnerable to offshoring. Too many companies have packed up their call centers in Ohio and across the country, and moved to India or Mexico.
Sherrod Brown

A study by the largest media and labour union in the country, the Communications Workers of America says that the Philippines and India are the top preferred destinations for outsourcing labour, particularly in call centre jobs. US-based firms have also set up call centres in countries like Egypt, Saudi Arabia, Mexico and China.

India’s National Association of Software ans Services Companies (NASSCOM) reports that the annual revenue of the Business Process Outsourcing (BPO) industry is $28 billion with India being the global leader.

Also Read: What Really Is The ‘Buy American, Hire American’ Order And Will It Impact Indian Professionals?

Get Swarajya in your inbox.