Stephen Timms, the minister for energy, e-commerce and postal services, recently addressed more than 800 of the leading players in the Indian technology industry at the opening ceremony for the annual Nasscom conference in Mumbai.

I met Timms the day after his speech and asked him about the government's attitude to offshore outsourcing and what can be done for those who are concerned about UK job losses.

"We see the development of these partnerships with India as an important asset for UK firms and the UK economy," he said.

"However, there are many concerns about outsourcing. There are people who feel there are threats on the horizon, so the DTI has been bringing people together from industry and the trade unions to investigate this.

"There is a consensus from our research that clearly indicates protectionism is not the right way forward for the UK."

One of the main rebuttals Timms has delivered to those who talk up the 'stampede of jobs' offshore is the UK's unemployment rate.

The Office for National Statistics has just announced a jobless rate of 4.9 per cent, which is the lowest since records began in 1984.

"Clearly, where there are people who lose their jobs as a result of outsourcing, that is a very serious problem and we have a responsibility as a government to ensure help is provided to get those people back to work as quickly as possible," said Timms.

"We are not taking a completely hands-off approach to this issue at all. The government has an obligation to be supportive, but we do not want to undermine the potential contribution to UK competitiveness."

The UK trade unions have mounted several vocal protests in the past year, including Unifi staging anti-offshoring Christmas carol sessions and the CWU pink elephant touring UK call centres.

Timms, however, believes the union movement is starting to take a more pragmatic view. "Connect has created a very good deal with BT. There is now recognition that there are gains for the UK economy and that means gains for union members," he said.

"It is very clear to the trade unions which have taken part in the DTI investigation that they don't think protectionism is the right way forward."

He is determined to ensure that government services are available for those affected by offshoring.

"The government is now far more proactive in helping people to find work, with serious tailored advice for the individual, not the old-style job clubs," he pointed out.

The pain of job losses cannot be denied and this is often the effect of an offshore programme. But as Timms points out, there is a bigger picture and everyone in the industry needs to be aware of it.

The creation of a global knowledge economy means that skills can be sought wherever they exist, not just by location or price.

Offshoring is no longer a game of wage arbitration between the developed and developing nations; it is a process of seeking the best quality of service.

Organisations are considering how to supply services to their clients at the best price - including the UK government.

And with companies such as Tata Consultancy Services winning UK contracts, politicians such as Stephen Timms really are ensuring they practice what they preach.

Mark Kobayashi-Hillary is the author of Outsourcing to India: The Offshore Advantage and is a member of the BCS working group researching the effect of offshore outsourcing on the UK IT industry.