Is Indian IT on the verge of losing outsourcing biz?
Added On:7/3/2012 1:36:00 PM
According to a latest update, the US Senate may consider a bill in next few days, marked as ‘Bring Jobs Home Act’ that has potential to make it less significant for American companies to outsource IT projects to locations such as India.
If reports are to be believed, the report is backed by President Obama and his Democratic party.
As a matter of concern, the so-called 'Bring Jobs Home Act', which is due to be introduced in the Senate by this weekend, is sponsored by two Democratic lawmakers and has support of AFL-CIO, the largest federation of trade unions in the US.
It is believed, if the government passes the proposed law, it will end tax breaks for firms that move jobs overseas along with offering tax incentives to those who bring jobs back into the US.
Industry experts further added, the most immediate impact of reduced offshoring would benefit US-based IT providers including IBM and Accenture. It is worth noticing, IBM and Accenture have significant presence as compared other contenders in India, which are growing, but significantly have smaller percentage of employees in US.
Experts point out, one of the key reasons to reduce offshoring is the dearth of qualified professionals in the US.
However, it is too early to say anything as nothing has been said officially. So, stay tuned.
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