Wednesday, December 21 2005 15:17 Hrs (IST) - World Time -

Bangalore: NASSCOM President Kiran Karnik has taken a dig at a section of the media for dubbing ITeS and BPO work done in India as being of 'low value' and said the contribution of the booming sector in terms of employment and wealth creation among younger generation cannot be underestimated.

Karnik said here last night a section of the media keeps asking him as to when they are going to move up the value-chain in this space. The work being done in India might be of a high-volume-low-margin activity but the country must not give up something which is a huge employment generator.

"Base is important," he said releasing a publication.

He said India's ITeS/BPO sector had already taken up high-end and cutting edge work, particularly business analytics, modelling, forecasting and predictive analytics and knowledge process outsourcing.

Karnik also likened the major part of the industry to be 'Udupi hotels' that serves the masses, underscoring the sector's ability in creating jobs to younger generation. Young graduates were finding it difficult to get jobs earlier but the scenario has changed with the advent of this industry.

He also said countries who outsource work to India are beginning to realise the 'special value' that it offers. It's not losing jobs in their countries; but creating new jobs, a whole range of new work by outsourcing, according to him.

Cost advantage that India has would remain so for many years to come. Quality of service, speed and time-to-market advantages in India are driving outsourcing growth in this country, Karnik added.