Infosys and Wipro, two domestic global majors, appear unconcerned over US President Barack Obama’s anti-outsourcing proposal.
These two big players feel outsourcing was here to stay and the impact would be more on smaller companies.
Infosys mentor Narayana Murthy has told his colleagues that outsourcing cannot be washed away as it was more beneficial to US companies.
Obama in his state of union address said it was time to end tax breaks to American firms that farm out jobs overseas and help those who create employment within the country.
“To encourage … Businesses to stay within our borders, it is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the USA,” he said.
IT industry circles said Obama’s plan poses a veiled threat to outsourcing destinations like India. India has been one of the biggest beneficiaries of outsourcing and, naturally, the move to end tax breaks would negatively impact the country’s BPO sector.
Som Mittal, president of Nasscom, the country’s association of software exporters, said the proposal would not have significant impact for the outsourcing industry. “We will be their solution and not the problem,” he said.
Infosys and Wipro assert that outsourcing was unavoidable, and the impact of Obama’s new tax proposal will be minimal.
Large companies like theirs have the breadth to expand their overseas presence but smaller companies will be forced to look at other ways to retain US clients.
Source:http://www.sakaaltimes.com/SakaalTimesBeta/20100129/4718702708548754715.htm
