Manmohan Singh is quoted today as suggesting that India *will* create 10 million new jobs in five years from the global outsourcing business:
“New business and service relationships are being forged across continents in a manner unimaginable even a decade ago,” Singh told a seminar on trade in services in New Delhi today. “I do not see any limits to these dynamic processes.”
Well maybe, but there is nothing automatic about this, which the ‘I do not see any limits’ argument seems to ignore. Certainly India is not alone in going after this business:
Economists and analysts are startled by the Philippines’ runaway growth in the sector. “The pace of development of the BPO [sector] in the Philippines has been impressive,” says a recent report by U.S. investment bank Goldman Sachs. “Three years ago there was a question mark whether Philippines could develop some [outsourcing] momentum. Now it’s a $3 billion industry.”
So there will be competition, but even more to the point will the workers be there to do the jobs? What do people feel, is Singh being complacent, or is this a realistic target?