Obama’s Tax Breaks and Outsourcing
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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I think the pundits of Mumbai and Bangalore are shaking in their shoes, seeing that Obama is being true to his words he proclaimed during his campaign, when previous speculations thought that his administration would not greatly affect India’s outsourcing.
Comment by Outsource Opinionist on March 4, 2009 7:49 am
It remains to be seen just how much will be done by the current administration to curb offshoring. THere are still hundreds of thousands of foreign temporary visa workers in the US and another 100,000 ramping up for 2009-2010. THis while our unemployment numbers are rising. Also how many companies are laying off Americans while maintaining their overseas operations. This is still one of the pillars of the economic crash. As the middle class is trashed so goes the main market in the US and hence our economy isn’t about to get better soon. For more see http://www.madnamerica.com
Comment by Madia on March 6, 2009 6:42 am
Taxation system should be simple, citizen friendly and fillig of the treasury of the national government for national services. Collect 2% tax only on all the receipts from individuals or corporates during the financial year scraping all other types of taxes in any form. I will be simple and well monitored also fill the treasury and minimise the corruption. It is a bold step and the decision. It is my simple and humble suggestion without any ill will or comment on the various comment here in the matter. regards. Cheers!.
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Comment by tamanna som on April 13, 2009 11:48 pm
Osama terrorised innocent, Obama terrorises BPO workers
http://www.bornmax.com/2009/05/buffalo-has-buffaloes-bangalore-has.html
Comment by Deepak on May 14, 2009 11:55 am
I agree
Comment by Sonal Maheshwari on May 25, 2009 10:57 pm
Outsourcing makes sense to me
Comment by Ratnesh on May 25, 2009 10:59 pm
The Salt River Project out of Phoenix Arizona is readying an RFP to outsource all IT Infrastructure and Data Center jobs in an effort to save money over the next five years. US jobs are being lost to India, China, and South America. This “Global Market” is impacting yet another company. What isn’t being talked about is how SRP is also in the process of applying for hundreds of millions in stimulus dollars for Smart Grid technologies and various other IT projects. Here our government is handing over money to a quasi-governmental organization so they can fund outsourcing their jobs overseas. Not only should we be worried about outsourcing additional American jobs but how about the Security of the Nation’s Grid? How about a company taking tax payers money while moving jobs overseas?
There is always a half truth behind every news report like the one below. They have every intention of outsourcing all of IT not matter how they spin it with the media.
http://www.azcentral.com/business/articles/2009/05/21/20090521biz-outsource0521.html
Comment by Mike on June 5, 2009 10:16 pm
i agree with you
Comment by Offshore Outsourcing on June 6, 2009 2:03 am