Dear All, Yesterday Mr Swaminathan Ayyar of ET and Dr Amit Mitra of FICCI were on Times Now Channel.Mr Ayyar is always very refreshing in his analysis and he made the point that the US President is duty bound to anounce certain measures against outsourcing.They will not affect existing outsourcing and subcontracts but would oly apply to future contracts.As the Amrrcian President Obama is expected to protect American interests,esp jobsas well as the profitability of US companies that outsource..How this will be implemented has to watched,according to Mr Ayyar.I thought Mr Ayyar's views ask us to be circumspect in our comments on the announcement.Narendra
2009/2/25 Nagavathani Sivasubramaniam
<vadhanisiva@gmail.com>
Dear Friends,
My views on President Obama declaring that he would not allow tax breaks for the US companies;
1.I feel that will be cost effective for the US Companies if they are going to outsource inspite of the non allowacne of tax breaks because though they get labour for reasonable cost they will not get the tax redemption which will be a double cost inspite of the outsource, where as if they recruit the local talents who lost their jobs during recession period. Moreover, the companies need not face any tax declarations and related formalities. Unfortunately, this will lead to attraction of talented citizens from South Asian countries to work in the US.
2. MNCs' added GDP to the national income as well. But by now many companies in India has to stop the out bound business and many youngesters in this field will be affected. further more, the business relations between both the countries will be less effective. India should take initiative in developing the business than depending on other countries. though the transactions took palce over wire and electronic media now everything will fall.
3. Truely it is an opportunity for India because India is developing now when compared to centuries back. Those developed countries are depending on the Indian talents of those in the software industry. Insted of adding the economic value to other country, the Indian talents can join together to work for the betterment of the country and take the country for further development. The dreams and encouragement of our former President Abudhul Kalam will come true if we show our creativity to develop our own country than depending on others.
S.Nagavathani
PR Student
On 2/25/09, Prime Point Srinivasan <prpoint@gmail.com> wrote: -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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