Re: [prpoint] Is USA cutting its own nose by preventing outsourcing?

Dear Sir,

The complete details of the statement are not captured by the media. There is a lot more which has to be viewed before any discussion on the issue can be taken up. The statement as has been aired by the media creates an impression taht it will affect outsourcing to India but this is incorrect.

The statement says that he would like companies being funded under the emeergency bail out package to refrain from outsourcing jobs which can be filled within the country. This is a politically correct statement and doesnt mean companies who are in trouble cannot save dollars by outsourcing the back office jobs to other countries to grow their profitability.

Rgards

Manoj

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From: Prime Point Srinivasan <prpoint@gmail.com>
To: Prpoint Group <prpoint@yahoogroups.com>
Sent: Wednesday, 25 February, 2009 2:47:31 PM
Subject: [prpoint] Is USA cutting its own nose by preventing outsourcing?

-dear friends

President Obama has declared that he would not allow tax breaks for the US Companies that outsource their jobs abroad.  This would discourage the US Companies to outsource their jobs to India and other South Asian countries.  According to Obama this would save 3.5 million jobs in US.  I will be happy if you can share your views on the following:

1.  How far, US Companies will be able to execute this suggestion.  As we understand outsourcing is cheaper for US companies, than engaging local talents.  In this outsourcing, US companies get the best global talents at a reasonable cost.  I do not know  whether US companies will still prefer to go for outsourcing, not withstanding tax benefits.  Even if they do not get tax rebates, will it be still cost effective for them.

2.  How far, this policy will affect Indian Companies and consequently, communication industry?

3.  Is it an opportunity for Indian Companies to think out of the box and to develop their own creative strategies for survival, instead of depending on other countries.

srinivasan
Moderator

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