News: Obama announces end to tax breaks to US firms outsourcing abroad

C-Suite

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.

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.

Read full story

Topics: C-Suite, Strategic HR, #Updates

Did you find this story helpful?

Author

QUICK POLL

Post-COVID, which aspect of work will technology impact the most?

2 months free subscription
q_auto,f_auto/v1593523489/mag-july-2020.png

Subscribe to all new People Matters HR Magazine

.

Subscribe
And Save 59% plus Two months free

Subscribe now

Interested in daily dose of short & crisp insights from the world of work?