Outsourcing Controversy is a Clash of Two Societies.

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The Outsourcing controversy that is threatening to slow down the growth of the Indian IT industry is a clash of the two societies namely the Cyber Society and the Meta Society.

A few years back when Internet was seen as a revolution that could enable any knowledge worker reach out to the globe through a cost efficient communication mechanism, there was a dot-com boom. While the Amazon.com and the like grew, the threat to the Meta society where the yesteryear giants felt jolted from their position of strength became a cause of worry to vested interests in the Meta society. This started the first clash between the two civilizations, the emerging civilization of Netizens of the Cyber Society and the existing civilization of the Meta Society. The Meta society came victors in this battle using the strategy of treating the Cyber Society merely as an extension of the Meta Society and using the IPR stick. Soon, the Trademark laws and Copyright laws of the Meta society became the means of establishing the meta society's hold on the Cyber Society.

The present controversies surrounding  outsourcing of contracts is another manifestation of the clash of the two societies. It is because of the capabilities of the Internet and the new communication technologies  that it is possible for a US citizen to be serviced by an Indian worker as if he is sitting right in the heart of California. The instant reach of Internet technology means that the geographical boundaries are no longer relevant and the business can structure a solution which is most cost efficient by bringing together the market need of USA with the manpower capabilities of India.

If US senators are thinking of pursuing a protectionist policy, they would be supporting an inefficient system which eventually will reduce economic wealth in the globe. This will also encourage India and other countries to protect their manufacturing sector by preventing the entry of foreign goods into India.

The unimaginative short term policies of US is likely to give a boost to the Swadeshi movement in India and probably start a new demand that India should  restrict outsourcing of hardware purchase in the Indian Government sector and introduce a legislation that in all e-Governance services, indigenous hardware alone can be used or preferred.

Perhaps US would like to use WTO  to arm twist India, but  political compulsions in India would force India to take a tough stand in this regard.

Thus it appears that the struggle to protect the vested interest of workers physically situated in a geographical location where marketing opportunities arise and prevent the workers of the Cyber Society to take over, could lead to the questioning of the fundamental belief of the WTO process and bring long lasting changes to the global economy in the coming years.

India which has a strong set of Cyber Society  workers, should take the lead in strengthening the hands of  Cyber Democracy by strongly opposing the anti-BPO movement and enable the Netizens irrespective of their Citizenship to pursue business opportunities wherever they arise.

Naavi

March 15, 2004




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