Who introduced Outsourcing in India?

Ask this to anyone from the current generation and the fingers would most likely point to N.R. Narayana murthy or one of the IT triumvirates. Anybody with a fair knowledge of recent history and economics would be well aware of the economic liberalization in the 90s and how the IT & BP Outsourcing sector rode on its waves to lead India’s economic resurgence in the 21^st century. However, Outsourcing isn't something which entered the Indian lexicon only in the past few decades; the term has had quite a long legacy in India...

For those who loved History during school days (no wonder that would be a tinie-tiny percentage) , the mention of the name ‘William Bentinck’ would bring back memories of  mucking up paragraphs on Sati, child marriage, pencil drawings of Raja Ram Mohan Roy and Vellore mutiny. I’m one of those freaks who is still obsessed with the past; though for a reason – I believe that the past, present and future are all linearly related; and that the more we understand our past, the better we can shape our future.

So, as I sat down this afternoon with a book on Modern Indian History, I came across a chapter on Bentinck. Lord William Bentinck was the governor-general of English East India Company from 1828 to 1835. He is well known for his social reforms which include abolishing of Sati, child marriage, infanticide and annihilation of thugs thereby restoring law and order which had fallen back with the decline of Mughal power. Also to his credit is the establishment of English as the official language of higher administration in India. Though his political legacy had been a mixed bag; the fall out of his decisions turned out to be beneficial for India in the long run.

By the late 1820s, the Company was reeling under intense financial crisis thanks to the aggressive political agenda (read wars) of his predecessors. The fiscal deficit was over 1 crore rupees. The Governing Council wanted to impose more taxes on the masses to meet the fiscal deficit. But, the good man that he is, Bentinck was against increasing taxes, and rather advocated administrative efficiency as means to improving the precarious fiscal stability. The most prominent of the measures he brought in was replacing British jobs in administration with Indians to reduce operational costs. He proposed that no discrimination based on race, color, place of birth or other prejudice should be made in the filling up of vacancies in government posts (It should be remembered that a majority of jobs were in government sector until the late 1990s). He also brought in elaborate educational reforms that enabled Indians learn Western science and literature which, per him would ultimately aide in administration. Though his intentions were purely to improve the state's finance, they had far reaching consequences. His measures brought in a more progressive outlook on the Indians allowing more to climb up the social ladder.  His plans did meet his intended motive as well - by 1835, the 1 crore state deficit had transformed into 2 crore rupees surplus in the government treasury – without any additional taxation!

No wonder, we are reaping the benefits of an educational system which was brought in to outsource English jobs to local Indians!

Yet another testimony of how a better understanding of history helps in understanding ourselves better!

- Arun