Obama announces end to tax breaks to US firms outsourcing abroad

As part of his efforts to bring the ailing American economy back on track President Barack Obama proposed an end to the tax breaks enjoyed by companies that invest and create jobs abroad. These incentives would now go to those firms creating jobs within the US. If passed, the new laws are most expected to hit India and China where the majority of such work is outsourced. Within India this would affect companies like IBM and Accenture which have major operations here. Gurgaon, Noida, Pune, Bangalore and Chennai are just some of the cities with BPOs with large workforces providing round the clock IT and other technological support to customers in the US. It remains to be seen whether this development would have an impact on such operations in the long term.