Obama dismisses outsourcing fears

The question of outsourcing has been a constant irritant between Indo-US economic ties, according to IBN Live.

The issue came up for discussion when prime minister Manmohan Singh met US president Barack Obama at Hyderabad House in New Delhi. Following the meeting Singh said: "India is not in the habit of stealing jobs from America."

Singh drove home a clear message that outsourcing was a solution to US economic worries. Obama admitted that synergies between US and Indian companies were creating jobs both sides of the globe. "US companies are creating jobs with tech in US and Indian businesses will take those technologies to expand growth and jobs in India and US," said Obama.

Signs of a price war in the outsourcing industry emerged after G4S, one of the UK government's biggest contractors, admitted it had shaved £10 million off its public sector contracts to win favour with ministers, writes the London Evening Standard.

G4S, which maintains hospitals, secures police stations and looks after prisons, schools and immigration centres, said it had signed a memorandum of understanding with ministers setting out £10 million of savings “through specification amendments on existing contracts”.

Alison Flynn for G4S says the deal would mean “efficiency savings” on things such as maintenance regimes and cleaning, amid signs of the government's success at hammering down contract costs with private suppliers.

TelstraClear's image as a good corporate citizen has been questioned amid claims it has serious problems with its call centre in the Philippines, which it outsourced from Paraparaumu, states Stuff.co.nz.

One staffer, made redundant at the end of October, says problems include technical glitches and Filipino staff who lack basic English comprehension. The problems have forced TelstraClear to slash its customer service assessment requirement from an 85% pass rate in New Zealand to 50% in Manilla, the staffer says.

The Kapiti Observer spoke to one TelstraClear customer who was asked to get his late elderly mother to the phone, even though the representative had been told the mother was dead. In a written response TelstraClear spokesman Dave Courtney said there was no drop in expectations for Manila staff.