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Bi-National Perspective on Offshore Outsourcing: A Collaboration Between Indian & U.S. Labour

Source: Centre for Education and Communication, Communication Workers of America, Jobs with Justice, New Trade Union Initiative, and Young Professionals Collective, October 2006

Background Business Process Outsourcing (BPO) or outsourcing of business processes to external service providers has become a global phenomenon. Companies in developed countries outsource low skilled service jobs to developing countries. An educated labour force, high unemployment and relatively low wage levels make developing countries attractive for outsourcing back office service work. India has become one of the top back office service provider countries since it started to provide business services to developed countries like the US, the UK and Australia in the late 1990s. The resultant boom in the service sector in India has been accompanied by emerging global debates on the loss of service sector jobs in these developed countries.