-Jayan CM
Guess! If there was no outsourcing what would have been the campaign issue for the presidential election? Hard thing but this time around Americans have no choice.
Well talking about outsourcing Sen. Obama claims that the best way to stop outsourcing is to give more tax cuts to outsourcers. Half of the American populations have no idea what tax policies Sen. Obama is talking about
For companies to decide whether to outsource or not in itself is a tough decision, and it only gets tougher when you have no option but to send out services to a third party purely for economical (cheap-labor) reasons. When a presidential candidate woo their voters by declaring tax cut for better job opportunities for the fellow Americans, how far has this claim been taken seriously by the US companies.
Leave alone the 'low-cost' factor for sometime, what could be the other reason for outsourcing? It is much more than what eyes could see. The factor that camouflage with low-cost term is the use of technology. Earlier, companies found it hard to handle the latest technologies which they had no control on and were unable to update or provide solution in spite of having the correct technologies. So it always made sense to ship out those jobs to places where it finds the right balance with latest technologies that suited to their business model. This is also one of those several reasons why outsourcing gained so much credibility in the past years.
Coming back to the present situation, Tax or no Tax- more and more companies fathoms the benefits of outsourcing, which keeps them ahead in the competition.
The presidential election has given everybody a chance to think about their plan to outsource. Who wins the election and what is in store for the outsourcers is still to be decided, but US companies will have to make a hard choice at this stage. No outsourcing means companies will have to strictly regulate their overheads, vice-versa be prepared to take up the Federal pressure. Either way the profit margins will take a dip, besides companies will have to park funds for R&D activities. So will all that help companies keep abreast in time, when most of this was taken care cheaply in a distant world?
An able orator- Barack Obama needs to keep a balance on his claim before he scare off US companies. When you declare tax cuts, companies might stay for sometime but when the going gets tough they will relocate to places where they get tax incentives. They go where they can make money, that's business if not economics. India is one such country that pounced on this opportunity and proved its skills when it does business outsourcing projects. Today India is a fearsome force.The scene is unlikely to change in the near future.
Everyone understands that outsourcing has led to loss of jobs for many in America and had drawn wide criticism on its consequence. So before selling his myth, Sen. Obama should realize that tax cut is not going to stop Outsourcing. The problem with America is that the people spend too much money. The public as well as the government spend money that they don't have. They live on credit "buy now, pay later" concept. How do you help that? President Abraham Lincoln once said "you cannot strengthen the weak by weakening the strong".
Guess! If there was no outsourcing what would have been the campaign issue for the presidential election? Hard thing but this time around Americans have no choice.
Well talking about outsourcing Sen. Obama claims that the best way to stop outsourcing is to give more tax cuts to outsourcers. Half of the American populations have no idea what tax policies Sen. Obama is talking about
For companies to decide whether to outsource or not in itself is a tough decision, and it only gets tougher when you have no option but to send out services to a third party purely for economical (cheap-labor) reasons. When a presidential candidate woo their voters by declaring tax cut for better job opportunities for the fellow Americans, how far has this claim been taken seriously by the US companies.
Leave alone the 'low-cost' factor for sometime, what could be the other reason for outsourcing? It is much more than what eyes could see. The factor that camouflage with low-cost term is the use of technology. Earlier, companies found it hard to handle the latest technologies which they had no control on and were unable to update or provide solution in spite of having the correct technologies. So it always made sense to ship out those jobs to places where it finds the right balance with latest technologies that suited to their business model. This is also one of those several reasons why outsourcing gained so much credibility in the past years.
Coming back to the present situation, Tax or no Tax- more and more companies fathoms the benefits of outsourcing, which keeps them ahead in the competition.
The presidential election has given everybody a chance to think about their plan to outsource. Who wins the election and what is in store for the outsourcers is still to be decided, but US companies will have to make a hard choice at this stage. No outsourcing means companies will have to strictly regulate their overheads, vice-versa be prepared to take up the Federal pressure. Either way the profit margins will take a dip, besides companies will have to park funds for R&D activities. So will all that help companies keep abreast in time, when most of this was taken care cheaply in a distant world?
An able orator- Barack Obama needs to keep a balance on his claim before he scare off US companies. When you declare tax cuts, companies might stay for sometime but when the going gets tough they will relocate to places where they get tax incentives. They go where they can make money, that's business if not economics. India is one such country that pounced on this opportunity and proved its skills when it does business outsourcing projects. Today India is a fearsome force.The scene is unlikely to change in the near future.
Everyone understands that outsourcing has led to loss of jobs for many in America and had drawn wide criticism on its consequence. So before selling his myth, Sen. Obama should realize that tax cut is not going to stop Outsourcing. The problem with America is that the people spend too much money. The public as well as the government spend money that they don't have. They live on credit "buy now, pay later" concept. How do you help that? President Abraham Lincoln once said "you cannot strengthen the weak by weakening the strong".
