'New UK law to regulate outsourcing'

IT industry body Nasscom has said that the recent changes in the UK law that seeks to protect the interests of workers made redundant by outsourcing point to protectionism taking root in that country.

"The revision in the Transfer of Undertakings (Protection of Employment) Regulations indicate first signs of protectionism taking root in the UK, which has so far been quite open to outsourcing," Kiran Karnik, president of National Association of Software and Service Companies said.

"Though there would be no big impact of regulations on Indian companies but it is a matter of concern. It (the change in regulations) is a small step by the government to regulate and control..," he said.

Karnik said so far UK has been quite open to outsourcing. The top leadership of UK resisted calls to clamp down on outsourcing when in the US the cry against it was at the peak.

They infact went on to say that it was beneficial to the UK's economy. Transfer of Undertakings (Protection of Employment) Regulations has been in force since 1981. It sought to give security to workers of a company when it was acquired by another firm.

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