Expressing confidence that it can protect jobs of its citizens without resorting to "protectionism," British government has tried to tone down fears against outsourcing to countries like India.

"We can protect people in this country without resorting to protectionism. We will go on growing call centre jobs and other good jobs in our country by competing on quality and skills, not on costs," Secretary of State for Trade and Industry Patricia Hewitt said in the House of Commons.

Outsourcing and India: Complete Coverage

She noted that if call centre jobs grew in India, as they would, "That is also good news."

"Labour members, at least, want India to become more prosperous, for two reasons: first, that is right for people in India and, secondly, as India grows, it will spend even more on goods and services from this country than the 2.5 billion pounds that it already spends every year."

Hewitt said she has issued a consultation document on off-shoring and commissioned a competitiveness study of UK call centres.

"I will host a round-table discussion next month with businesses, trade unions and others concerned about this issue," she told the House on Thursday evening.

Hewitt said all surveys confirmed that Britain was doing better than almost any industrialised country.

More than 440 Indian companies invested in Britain last year, which helped to create jobs, she said.

On the issue of quality, "some of my honoured friends know that Littlewoods recently announced that it is moving its call centre operations back from India to the UK in order to secure its required quality of customer service," Hewitt said.

Emphasising the need for raising the level of skills in the IT sector as well as across the economy generally, she said: "That is why we are making difficult reforms that will allow us to put some one billion pounds of additional funding into our universities to raise the quality of teaching for undergraduates.