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In a recent article published by the Gerson Lehrman Group, Obama's elimination of tax breaks for outsourcing was analyzed. The article states (and I agree) that there is a large difference between the elimination of tax benefits for a business practice (the Obama proposal) and trade protectionism (what the pundits in Bangalore and Mumbai are crying "foul" about).
The article goes on to analyze which segments of the market will be hardest hit – and asserts that small company outsourcing will feel the greatest effect from these changes. Interestingly, the article also adds that this may prove to be a good thing for such companies, as they often failed to derive the full benefit from outsourcing.
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