US Federal bill set to hit Indian BPO

[Stuge]

HOUSTON: A bipartisan bill has been tabled in the US House of Representatives to make companies that move call centres overseas ineligible for grants or guaranteed loans from the federal government, a move aimed at stemming the tide of jobs heading to nations like India. Introduced by Rep Tim Bishop and Rep David McKinley, the US Call Center Worker and Consumer Protection Act would also put some aggressive mandates on call-centre operations. "Outsourcing is one of the scourges of our economy and why we are struggling so to knock down the unemployment rate," said Bishop. Under the protectionist legislation, not only would customer service representatives working overseas for US corporations have to disclose their locations upon request, they would also have to offer callers the option of being transferred to call centres back in America, the 'Huffington Post' reported. Besides, the proposed legislation requires the Secretary of Labour to maintain a list of employers that locate call centres overseas. The companies also require to provide 120- day advance notification before moving a call centre overseas. The call-centre bill has strong backing from the Communications Workers of America (CWA), a union which represents 150,000 call centre workers in the US. In a report, issued recently by the CWA, the union alleged that outsourced call centres, including some based in India, pose a serious security threat as there are insufficient safeguards in place to deter fraud. The report titled 'Why Shipping Call Center Jobs Overseas Hurts Us Back Home' cited several examples of security breaches involving outsourced call centres, including in India.

http://timesofindia.indiatimes.com/tech/news/outsourcing/US-Federal-bill-set-to-hit-Indian-BPO/articleshow/11180840.cms

[Cricket_2_Death]

This sounds great, I hope it passes. The U.S. can take all the jobs they can get back right now, but watch these companies do everything in their power to avoid giving up their precious cheap labor.

[Brainfade]

I haven't read the whole bill, but do they talk about taking manufacturing back from China? That is an infinitely bigger problem than BPOs in India.

[Cricket_2_Death]

I haven't read the whole bill' date=' but do they talk about taking manufacturing back from China? That is an infinitely bigger problem than BPOs in India.[/quote'] Well said and you are 100% right on this. They also need to target on bringing back blue collar jobs to the U.S. but once again these American backstabbing companies will do everything to cling on to cheap labor in foreign countries. :(( This bill is a start though, but there is still much to do.

[Clarke]

Big govt passing regulations that prohibit innovation & "job creation" from corporations :finger:

[G_B_]

its been tabled. not passed. The corporates will use lobbyists to stop it or attempt to anyways. Indian firms have moved up the good chain anyways. It will mostly hit the Philippines.

[Rajiv]

Please bring it back to US, this Indian call center quality is not really working

[Brainfade]

Big govt passing regulations that prohibit innovation & "job creation" from corporations :finger:

No. It is a bill to *stop* grants and guaranteed loans. In other words, getting fed $$ *out* of the system. Less govt intervention.

[Cricket_2_Death]

Please bring it back to US' date=' this Indian call center quality is not really working[/quote'] This too

[Clarke]

No. It is a bill to *stop* grants and guaranteed loans. In other words' date=' getting fed $$ *out* of the system. Less govt intervention.[/quote'] I wasn't serious at all. But if i were, what's the conservative solution to bringing manufacturing & service jobs back to the US ? Lower/nil taxes to corps that do so ? That's what Huntsman did say in one of the debates.

[Brainfade]

I wasn't serious at all. But if i were' date=' what's the conservative solution to bringing manufacturing & service jobs back to the US ? Lower/nil taxes to corps that do so ? That's what Huntsman did say in one of the debates.[/quote'] Three things: (1) Streamline the currently stifling regulatory environment. I speak from my work in academic labs and observations of the biotechnology industry - the regulations are out of control. I understand the need for safety and environmental stewardship, but compliance is near-impossible. EPA, OSHA, FDA all have massive regulatory requirements, which are sometimes in conflict. Moreover, they have power and want to use it. The overall effect? Babugiri. Common sense rarely prevails, litigation threats are always simmering, the fines are exorbitant, and we need personnel just to keep up with compliance. Cost of regulation is one of the reasons for innovative start-ups and university labs not being able to bring products to the market, and have to license or sell out to the big-wigs. I have also read that such stifling regulations have hampered other manufacturing enterprises. But, when someone suggests we need to streamline the EPA/OSHA and relax the regulatory environment, he is immediately branded as anti-environment and anti-worker. So, what is the easy way out? Take your plant and move it to China. Now that I said this, someone will accuse me of saying that I want appalling sweatshop conditions in the US :-). (2) Expand right-to-work. Classic case for this - Boeing. The govt (NLRB) threatened litigation against Boeing when they wanted to start a 787 plant in SC, and then dropped the case when the Seattle-based union strong-armed the company into signing wage-increases etc. This reeks of big govt/union nexus. You are either breaking the law by putting up a plant in SC or you're not. Threatening to prosecute and then withdrawing when the union gets its way is unbecoming of a government. This is the expanding tentacle of big government that I despise. (3) Maybe lower corporate taxes, but if you did that, then close all loopholes, exemptions and subsidies. That should level the playing field for big and small businesses. back to work before I get fired :-)

[CSK Fan]

This sounds great' date=' I hope it passes. The U.S. can take all the jobs they can get back right now, but watch these companies do everything in their power to avoid giving up their precious cheap labor.[/quote'] This will only bring back a) jobs that no one wants b) at a pay scale 10 times which they are at currently Dont know how this is going to help US

[punjabi_khota]

Any one else feels that the desi call center people (in india) are not very kind to desi customers in US. :(( Its like going to a desi restaurant and getting second grade service compared to whites.

[Rajiv]

Any one else feels that the desi call center people (in india) are not very kind to desi customers in US. :(( Its like going to a desi restaurant and getting second grade service compared to whites.

..their conv starts with " I am sorry ..." Arre pehle sun to le baap.., after leaving them an email and VM that there is a time difference, I get a call at 6AM in the morning and that too with no voice mail. I finally picked up and they reach out .."Sir Sir Sir...." I was angry and felt bad that this is Shining India who will get paid, get a credit card, spend money, buy a nano and help the economy

[triam]

Outsourcing for cheap labor is not going to change. It will only continue to increase, the problem is a global one (not localized to a particular country), the solution needs to be global too (one country's laws and regulations will not help in this).

[Ram]

Well, if the law mandates that anyone in the US dialing the call center of a US company should be offered the choice of being transferred back to the mainland US, how is this any different to say, a person in India calling a travel agent in India and the travel agent offering him the tickets of all Indian airlines first, before moving onto foreign airlines? Free trade is free only if it works for these people. It seems like their definition of trade includes only goods, when technically, it includes services (read labor) as well.

[punjabi_khota]

Who the hell would want to be transfered to American call centers. Looking at how ridiculously long the wait times are most of these calls, I am betting most people would rather grin and bear Mr. Jawn from Ambala than wait 20 minutes for suzy from alabama.

[Ram]

On a personal note; Having worked recently in organizations that were directly impacted by the recent regulatory legislations and being part of teams that were actually responsible for implementing the changes required for the firm to be compliant with the new laws, I have come to realize that the concept of the govt. regulating the private sector, especially at a micro level is a pipe dream. The fact of the matter is, the influence of corporate lobbyists is so strong and entrenched, it is close to impossible to pass any meaningful legislation that forces corporations to make fundamental changes to the way they do business. Irrespective of how tough or uncompromising the law may sound on the outside, it is only as strong as its weakest loop-hole. You can bet your bottom dollar that there will be several of these loop-holes that will give these corporations a pain-free way out. Yet, why do they lawmakers insist on passing these laws? So that come election time, they can proudly run ads in the constituency saying I passed legislation preventing outsourcing and supporting American jobs blah blah..

[Clarke]

Three things: (1) Streamline the currently stifling regulatory environment. (2) Expand right-to-work. (3) Maybe lower corporate taxes, but if you did that, then close all loopholes, exemptions and subsidies. That should level the playing field for big and small businesses. back to work before I get fired :-)

No harm in streamlining and unions have to be realistic wherever they exist. What i believe is subsidies etc can be a useful means to help the people as times change. The main problem i see is how on earth do you compete with lack of environmental regulation or labor laws in countries outside USA. For instance, I don't see how the suggestions above can allow Apple to manufacture electronics in the US as opposed to Foxconn manufacturing in Asia for a fraction of the cost. I'm no economist to suggest flat tariffs as the solution but the profits still seem just too tempting for any corporation overseas with or without your suggestions.