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Obama's Economic Blueprint for America - Talks tough against Outsourcing and Phony Financial Profits

Created by : S. Muralidharan, Executive Director, Knowledge Foundation & Campus Around the Corner  | 01 25 2012 03:57:11 +0000
Keywords : obama's economic blueprint for america - talks tough against outsourcing and phony financial profits
Activity:  405 views;  last activity : 01 30 2012 05:36:48 +0000
 
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Danger to India's BPOs and Call Centres? Vs No danger to Indian economy!
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I agree that President Obama's 2012 blue print will harm BPO and Call Centres.However,I see no danger to Indian Economy. Thanks, Mr Muralidharan for referral.
By Mohammad Bakhsh, Project Leader/Managing Consultant, Freelancer  01 25 2012 04:29:01 +0000
 
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“To encourage ... businesses to stay within our borders, it is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the United States of America. Because of the steps we took, there are about two million Americans working right now who would otherwise be unemployed,” US President, Mr. Obama said.

A report by IT consultancy firm estimates that 3.3 million American jobs will be lost to outsourcing in 15 years ending 2015. Half of the Indian IT-BPO industry’s $71.7 billion revenue comes from the US.

“The whole issue about taxing companies which were shipping jobs overseas and taking away tax breaks actually does not relate to the work that is outsourced. That is really about US subsidiaries which have set up plants overseas,” Ameet Nivsarker, vice-president of Nasscom said. It will affect American companies more than the Indian IT services industry, he added.

 American companies primarily move jobs abroad to save costs. If the costs saved are more than the tax benefits accrued, the Companies won’t be ready to head to the threat call by the President.

 It is unethical for the companies to enjoy the tax benefits in their home land while establishing their subsidiary plants outside to save costs.

US President’s speech can be considered critical, coming a week after Republicans won a US Senate seat in Massachusetts that had long been held by late Democrat stalwart Edward M. Kennedy, that left Democrats one vote shy of the 60 needed in the Senate to break Republican stalling tactics. The loss of the critical seat was seen by many as a message from voters troubled by high unemployment.

If it is the case with the India, our political parties and leaders would have brought out some emotional issue and play a cheap divisive politics to win over their political opponents.

In contrast US President is playing a positive political game against his political opponents. Considering the dwindling economy of his country, his stand is understandable. One should appreciate his move even if it affects prospects of our companies and the employment.
By Srinivas suravajhala, Asst. Manager.  01 25 2012 10:07:00 +0000
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Yes Cherian Sir! Indian faced the same problem that you mentioned when the outsourcing industry took of in a big way. You are hinting at educating the youth of dangers of small jobs. Guess that is the difference in approach of people in states. Guess Americans plan ahead. Here we lost a generation to non career oriented, easy money. But now the young are smarter - BPOs largely contain students, who work for a part-time basis.
By Vinoy Scaria James, Consultant, Travel Hub  | 01 30 2012 05:35:05 +0000
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I think there is around 9mn Americans out of payroll which is around unemployment level of 9%. Most of these jobs were exported to other countries and in the short term for Americans to revive these lost jobs is to stop outsourcing work from other countries. Then there is another problem, Americans tend to look for such small jobs for existence supported by welfare which in the long run is unhealthy for America in the way of lowly educated maturing into adulthood who may not be able to make rational decisions concerning communities they live in which goes long way in sustaining Capitalistic philosophy. So with some short run problems they may be able to induce the young generation to seek higher qualified skills and earn better payscales and better future for the sustainability of capitalism. Thanks.
By Mathew Cherian, Research Associate/Analyst, Western Michigan University  | 01 25 2012 18:34:14 +0000
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Apparently the danger is expanded towards the American software developing units in India too. We must get ready to face Mass Unemployment as a study says that at least 40 lacks of Indians in that process and profession will have to suffer. BPOs are just minimal unit.
By Ardhendu Pal, Upgrading Knowledge Base, Researching in Computer Software/Hardware  | 01 25 2012 17:26:39 +0000
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President Obama's 2012 State of the Union Address: Excerpts:  "Imagine what we could accomplish if we followed their example. Think about the America within our reach: A country that leads the world in educating its people. An America that attracts a new generation of high-tech manufacturing and high-paying jobs. A future where we’re in control of our own energy, and our security and prosperity aren’t so tied to unstable parts of the world. An economy built to last, where hard work pays off, and responsibility is rewarded....  blueprint for an economy that’s built to last – an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values."
By S. Muralidharan, Executive Director, Knowledge Foundation & Campus Around the Corner  | 01 25 2012 03:57:11 +0000
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Yes it will have some impact on Indian economy but I don`t think it will affect a lot. India has developed its trade with many other countries in recent years. Now Indian economy is not like those which are totally dependent on US or Europe. Our trade is about to increase up to 14 billion dollar with Thailand in coming years. Similar is the conditions with other nations. I don`t say that American policy will not affect India. US and Europe are giants and they will affect any country of the world at any front but we need not to be apprehensive.
By Saquib Alam, B.A (sociology), BRA Bihar university  | 01 28 2012 12:17:29 +0000
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It is nothing but the speech given for his extension, as U.S. President.
By SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd  | 01 27 2012 05:51:11 +0000
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Elections have politicians singing and dancing to different tunes. It is the same with the USA. It cannot ignore the vital benefits that it draws out of BPO outsourcing it does fro India or other third world countries. the only difference will be they will be taxed differently. People who want to go light on their BPOs they would stick with us. It is therefore important for the Indian companies to understand the equation and relate it accordingly to the USA outsourcers. It could create a win-win situation.
By AMISH , Admin/Facilities Manager, VKVC  | 01 25 2012 11:55:37 +0000
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This is just election eve rhetoric. In the short term, I do not see, America having the resource nor feasibility to cut back on outsourcing drastically. In the long term probably they may adopt such measures most likely. Well, then we will have to look to newer markets.
By Vinoy Scaria James, Consultant, Travel Hub  | 01 25 2012 04:38:34 +0000
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