Contending that outsourcing had not become a major political issue in the United Kingdom, London School of Economics and Political Science said on Monday that it expected British companies to continue outsourcing although quality as well cost will be the driving factors.

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"The opposition to outsourcing is not significant in the UK...While in individual communities when a call centre closes and moves to Bangalore there may be concerns, but it has not become a major political issue," Howard Davies, director, LSE told reporters in New Delhi.

UK believes in "free trade", Davies said, adding that if developing nations offered better service for a better price, they should be allowed to do so.

Asked if the outsourcing by companies in the UK would increase, Davies said, "Companies will proceed cautiously and will look at quality as well as cost."