"'It is a cost-savings issue,' says Kumar, pointing out that engineers in India earn about $5,000 to $10,000 a year compared with at least $50,000 a year in the US.

'In the short run, it raises unemployment issues in the US, but in long run it is necessary to compete,' Kumar adds."

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Forrester Research Inc predicts American employers will move about 3.3 million white-collar service jobs and $136 billion in wages overseas in the next 15 years.

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Those in favour say it enables US companies to compete globally, according to the Journal.