Is Barack Obama Anti-Outsourcing?

Filed in archive Opinions & Insights on June 29, 2008

Photo courtesy of iStockphoto, Mike Matas

A number of authors in the Indian press have asserted that Barack Obama is anti-outsourcing. However, there are mixed signals coming from the Obama camp.

In speeches, Obama has suggested that he will readjust the tax code to offer more tax incentives to companies who do not offshore, but he has also acknowledged outsourcing's inevitability, saying that "[r]evolutions in communication and technology have sent jobs wherever there's an internet connection; that have forced children in Raleigh and Boston to compete for those jobs with children in Bangalore and Beijing."

Therefore, it is probably somewhat simplistic to say that Obama is "anti-outsourcing." He may wish to incentivize different behavior, but there is little evidence that he will seek to regulate or otherwise limit outsourcing.

There are many other factors that affect the value of outsourcing. Currency fluctuation is, as we know, a major one. It could, therefore, be argued that the weak-dollar policies of the current administration are inherently anti-outsourcing, as well.

Ultimately, I expect that US tax policy and US tax breaks, one way or the other, will not make too much difference - nor will it affect the value proposition of already-successful outsourcing efforts. Marginal outsourcings may be affected, but those are already under significant pressure due to exchange fluctuations and the weakening US labor market.

For reference, see the following articles:

February 27, 2008 - Rediff
June 11, 2008 - Rediff
June 28, 2008 - Express India

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Rating: 5.17 out of 6 vote(s) cast.

Response from: Programmer (06/30/08 11:14pm)

Very interesting post! I guess, he is really against outsourcing.

Response from: Andrew Link (07/01/08 7:59am)

Yeah, really interesting. I guess I'll vote for him.

Response from: christian (10/11/08 4:09pm)

ive heard that obama is anti-outsourcing and what i really can't forget when he said that " whats for the americans, are only for the americans" . well, thats really good coz he is being so nationalistic, but for me that is also racism. obama, look at yourself closely in to the mirror ( i dont mean to be a racist as well) , and look closely how many people from different nations will be affected by your anti-outsourcing campaign. aren't you happy that this country is not just giving a national aid but also international assistance? if you will take that one off, will it make a difference? yeah, that might give jobs to million of unemployed americans, but is that really help at all when everyone else around you is loosing jobs?

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another point is that, offshoring is that US companies are facing shortage of talents to drive growth. iit is in their interest ( the company ) to remain competitive and that such considerations must be determined by the said companies.

im just one of the few american-national who was greatly affected by this coz most of my family members in asia are working for outsourcing... before i was pro obama, but i now...im having my second thought. for once i thought obama means "change" , but i think its all about racism after all... these people who was employed by outsourcing doesnt mean to be more self-driven and knowledgable with product know-how...obama, this country was populated by different nationalities, each being blessed with citizenship and the right to vote, and if you dont know how to live with this people, this people won't live with you as well... the competitiveness of this outsource only shows that our country has a shortage of talents..

MC CAIN..U HAVE MY VOTE!