US Call Centre Bill would restrict free trade

IT industry body Nasscom today said the proposed US Call Centre Bill would restrict free trade and establish discriminatory trade practices.

A Bipartisan Bill has been tabled in the US House of Representatives to make companies that move call centres overseas ineligible for grants or guaranteed loans from the federal government, a move aimed at stemming the tide of jobs heading to nations like India.

"It is indeed disappointing to see the US adopting 'protectionist' measures like these that restrict free trade and establish discriminatory trade practices. US lawmakers seem to have developed the practice of unfairly taxing companies working overseas, to pay for domestic issues," Nasscom President Som Mittal said.

In case this Bill is passed, not only will it see objection from India but Latin America, Ireland, the Philippines and Canada, he added.

"The BPO industry operates on a global sourcing model, builds efficiencies, benefits of which gets passed to the common citizen. Laws such as these will increase the cost of service and will see a rejection from common citizens," Mittal said.

The Bill by Representatives Tun Bishop and David McKinley also proposes a penalty of $10,000 per day on US call centres, for failing to report relocation to an offshore location, within 60 days to the US Department of Labour.

Also, call centre operators who answer calls will need to identify their location and the caller will have a choice of choosing a US-based operator.

Mittal said it was unlikely that the Bill would be passed.

"We have seen attempts to present such Bills in the past. However, the Bill has only been introduced in the house, and there is a long way for this to become legislation," he said.

However, the Bill indicated "the mindset of a certain set of policymakers and could set the tone for the next year, especially it being an election year," he added.

Nasscom said it would work with its counterparts in other countries, since the Bill would impact other nations as well.

"As far as the government is concerned, they are aware and I am sure they will discuss the matter at various platforms," he added.

According to Nasscom estimates, the BPO export segment is anticipated to grow by 14% to reach $14.1 Billion in FY11.