The US President Barrack Obama vowed to put a full stop to outsourcing of jobs by US companies in a desperate bid to prop up his flailing popularity. In his first state of union address on Wednesday, he revised his stand on outsourcing, which occupied center stage during his presidential campaign.
While the US is still struggling to find a foothold in the aftermath of recession, major outsourcing beneficiaries like India and China posted enviable growth rates. Unemployment rate is at an all-time high in the US at 10%.
Obama is blaming paucity of jobs in the US to outsourcing. He is planning to counter this by removing tax cuts for outsourcing companies and introduce tax breaks for those who create jobs in the US.
However, industry sources are not overly worried and do not see any immediate threat to the Indian IT/BPO sector. Ending of tax breaks is not expected to create any ripples in the present scenario. Those who already have offshore operations are most likely to continue operations. However, it may discourage newcomers to explore overseas in search of greener pastures, as the grass may not be green anymore.
Nasscom, the association of software companies feels that the real worry is ‘indirect protectionism’ and not tax cuts. Nasscom VP Ameet Nivsarker assured that the move is aimed at those US companies operating in regions where they get tax benefits.
The general feeling is that outsourcing has grown deep roots and is practically impossible to uproot. With the competition over cost and skill getting higher and higher, US companies are left with no choice but to offshore to destinations like India.
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The fact is Mr. Change or so called Obama has big mouth can only talk good and while listening he has the ability to take you to the wonderland (however that feeling of being in wonderland is till the time he gives speach) America foundation has being kicked by chinese dragon so hard that it will fall and the business class of america will run out of america to other nations no matter mr change taxes them or gives them tax beaks. so relax watch the movie called the great america, interval is about to come and in few years you will see its fall cause it is bankrupt nation just like Pakistan.