Outsourcing Quota in US can cause collapse of BPO India Inc. 
Peter Oberois, Special Correspondent
September 12, 2004 

According to Pat Buchanan, conservative think tank, commentator and ex-presidential candidate BPO and other imports from countries like China and India should be based on quotas per country. In late eighties Ronald Reagan put quota on Japanese car makers of 16 millions cars per year. That made these companies builds car-manufacturing facilities in America. That boosted domestic car manufacturers in US and also created jobs in America. Bush or Kerry may do the same in 2005 or earlier. The problem is that Indian BPO companies survive on exploiting cheap educated labor force in India. They are poorly managed and little to offer in innovation and product excellence. Based on that these Indian BPO companies cannot manage any significant operations in US with US workforce. This may cause eventual collapse of BPO market in India with no recovery ever. India’s biggest problem is that most of her Engineering graduates are being lured into IT and BPO outsourcing markets. If BPO fails, there will be extremely high unemployment and these engineers due to lack of experience cannot be employed elsewhere.

Outsourcing quota is what Bush or Kerry Administration might be thinking after election. This provides equitable access to BPO markets for countries like Philippines, Ireland, Israel, Brazil, Pakistan and so on. But it will badly punish India with all that infrastructure already built based on hyper promises of BPO contracts.