United Kingdom, Europe protectionist steps to make business process outsourcing pie sour

Even as mounting job cuts, owing to the global meltdown, is pushing several countries to take a hard look at their policies, outsourcing, the obvious one, stares at policymakers in developed economies. In fact, UK and governments in European countries are expected to bring forth more stringent protectionist policies with respect to outsourcing,say industry experts. The obvious fallout: India’s outsourcing operations will face the heat with a dent in profitability.

Peter Redshaw, VP-IAS banking & investment services, Gartner Research, says, “In a bid to generate local jobs, the governments in the UK and Europe are looking at adopting protectionist policies with respect to outsourcing. Expect these policies to be more stringent than the ones coming from the US.”

Says Rodney A Nelsestuen, research director, cross industry research at Tower Group, “It’s a kind of political risk that governments are taking.

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