No Tax Breaks for US Firms That Outsource Their Jobs Abroad: ObamaBy Angsuman Chakraborty, Gaea News Network
Wednesday, February 25, 2009
US president Barack Obama has bad news for Indian IT and BPO industry. Its as simple as that. In his speech to US Congress about economic stimulus and financial recovery, he made it clear that there will be no tax breaks for the US companies that outsource their jobs abroad. This means, the US companies will be discouraged from outsourcing their work to India and other South Asian countries. Obama also said that his Stimulus deal will create and save 3.5 million jobs. Obama declared that he had already found US$2 trillion in savings. SO this option is likely to stay for now.
We are investigating and trying to talk to some of the top heads of Indian IT industry to understand how grave the situation actually will be. The country’s US $50 billion IT sector exports around 90 percent of its output to the US. Though India wasn’t expecting something like this at this point of time, but it has happened. and we will have to see how the markets react.
M.K. Pandhe, the president of Centre of Indian Trade Unions told Frontline that,
The IT sector may get affected further after the U.S.’ decision to reduce outsourcing. We have learnt that many IT companies have already announced cancellation of job interviews.
We will keep you posted. Bookmark it.
Tags: Barack Obama, Obama, US congress. tax cuts on US outsourcing