Tax Ruling Saves Indian Outsourcing

Filed in archive Outsourcing News on July 23, 2007

One factor which could be considered as a hindrance in the growth of Indian outsourcing would be the implementation of strict tax rules in the said country.

It seems like this is about to change as India's Supreme court implemented a new rule favorable to outsourcing companies. According to the new rule, "foreign companies would not have to shell out taxes on global income earned from deals with their outsourcing units if they were conducted at market prices".

This new rule would help outsourcing companies maximize their outsourcing deals as the money originally intended for tax would be used to the betterment of the outsourcing deals. India sure is determined to be on top as the main outsourcing/offshoring destination because they are slowly taking steps to ensure that their government would be "outsourcing-friendly".