British Telecom 's decision to outsource in India came under attack at its annual meeting in London but its chairman Sir Christopher hit back saying the company's business had been 'transformed' by the new management.

"We have transformed uncertainty into clarity, low morale into enthusiasm, loss into profit, a suspended dividend into a significant one.. In terms of operational and financial performance, BT had a really good year," Sir Christopher claimed at the meeting on Wednesday.

Referring to protests against outsourcing, Sir Christopher said the bulk of new investment was being made in new British call centres with only two being located in India.

He made it clear that BT would not be dropping its plans.

"We understand your and the unions' concerns.  It's a genuine concern but we feel it's fundamentally misguided," the chairman argued.

The meeting was picketed by union activists parading an inflatable pink elephant in protest at the decision to create 2,200 jobs in Asia.