US President Barack Obama is back to bashing outsourcing. Amid talk of fading allure and promises not kept, an embattled Obama, bruised by economic, political, and foreign policy crises in his first year in office, has pledged to stop US companies from taking jobs overseas and warned Americans about increasing competition from India and China.
Incidentally, this is not the first instance of Mr Obama upping his anti-outsourcing rhetoric. In May last year, he had said American companies’ shipping jobs overseas will be required to pay more taxes, and that tax-deferral benefits for such companies will be ended. “It’s a tax code that says you should pay lower taxes, if you create a job in Bangalore, India, than if you create one in Buffalo, New York,” Obama had said.
However, for once Indian IT companies, who get over 50% of their revenues from the US, are not rattled by Obama comments. The IT stocks too don’t seem to have suddenly caught `Obama flu’. Here’s over to the nine reasons which analysts and industry honchos believe will keep outsourcing going strong tax breaks or no tax breaks.
IT industry body Nasscom said it’s unlikely to have any direct impact on Indian IT companies. “We think the target, if at all, could be subsidiaries of American companies that book profits in low tax regions, and do not repatriate the same to the US, where tax rates are higher. A measure like that won’t affect Indian companies
Source:http://infotech.indiatimes.com/quickiearticleshow/5517732.cms
