Wednesday, May 6, 2009

US President Barack Obama Has Targeted Outsourcing Industry Once Again - NASSCOM

US President Barack Obama has targeted outsourcing once again in his attempt to bring back the ailing US economy on track and the clouds seem to be getting darker for Indian IT companies.

Indeed, Obama’s proposal to limit U.S. companies’ ability to defer paying U.S. taxes on offshore earnings does put Bay Area companies doing a lot of business overseas directly in the crosshairs. “It would adversely impact our ability to invest and grow our business in the (United States) and to compete against our foreign competitors,” said a spokesman for Cisco.

Google, whose CEO, Eric Schmidt, is supposed to be a close buddy of Obama’s, said it is “too early to evaluate the potential effect on Google’s operations, as there will likely be multiple proposals considered.”

IT body NASSCOM said it is still reviewing the tax proposals announced by Obama. However, “prima facie, the proposals appeared to be aimed at addressing the tax rate differentials that exist across the world and if implemented, this would impact American headquartered companies with overseas operations,” it said.

source from here