UK backs India outsourcing

The United Kingdom will not put up barriers to protect British firms against tough competition from India.

British minister for energy and e-commerce, Stephen Timms said that Indian firms would boost the competitiveness of British industry.

He was speaking to delegates at an international Information Technology (IT) conference in India's financial centre, Bombay (Mumbai).

Mr Timms said that an IT contract worth more than $200m had been awarded by Britain's National Health Service to two Indian firms, Tata consultancy and Mastek.

He said this showed Britain's committment to a free, transparent and open market.

There has been growing opposition by trades unions in Britain to the increasing transfer of work to India which they say could cost up to 200,000 jobs in the UK.