US bill against offshore call centres could hit Gujarat BPOs

23 Dec 2011

A new US bill which seeks to bar US offshore call centres from seeking federal grants and loans, has raised concerns in Gujarat, which has been riding the BPO boom.

The bill contains a proposal that customer service representatives would need to disclose their locations and transfer call back to the US when requested.

 In the event of passage of the bill, US call centres would become liab;e to a daily penalty of $10,000 for failing to report relocating to an offshore location within 60 days to the US Department of Labor.

According to industry estimates around 80 per cent of BPOs in Gujarat catered to US markets.

Reacting to the US move Nasscom vice-president Ameet Nivsarkar said, the bill was basically aimed at retaining jobs and creating more employment in the US.

Decrying it as a protectionist measure, he said in a statement, ''It is indeed disappointing to see US adopting 'protectionist' measures like these that restrict free trade and establish discriminatory trade practices.''