Legal challenges from white-collar unions against sending jobs overseas and outsourcing of services in American and European companies are harming Indian outsourcing.

At present, the US employees union of Reuters Group Plc, Newspaper Guild of New York, is pursuing a lawsuit against the outsourcing of editorial jobs to Bangalore. They claim that the offshoring of US-based editorial jobs violates the employees' contract with Reuters. The outcome of this case will become legally binding.

Additionally, journalists and other employees will picket Reuters' US headquarters in Times Square and other US bureaus to protest job offshoring.

New York Guild President Barry Lipton said, "Instead of focusing on producing the highest quality news, Reuters is now focused on producing the cheapest news. This change is not just bad for our members, it's bad for Reuters and itss clients."