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Thursday, 2 September 2010 19:35 UK Login |  Bengaluru, India


 

US tech companies rethink Indian outsourcing

It's just too risky

By Nick Farrell in Rome @ Wednesday, March 04, 2009 8:56 AM

 
 US tech companies are rethinking outsourcing plans because of the economic crisis, as well as pressure from the Obama administration to keep jobs at home.

The BDO Seidman 2009 Technology Outlook Survey of chief financial officers suggests many think that outsourcing at the moment is not a good idea.

According to the Mercury News, while some experts think the bad economy will actually accelerate the movement of US jobs to developing countries, 22 per cent of the respondents said they were more likely to consider the United States for new outsourcing work than foreign countries.

About a third said they had a lessened appetite for overseas outsourcing. A fourth of those polled are concerned about international business and tax regulations, and 14 per cent worry about intellectual property risk.

President Barack Obama has said that tax breaks for corporations that ship jobs overseas will be over - and that worries some US companies who fear that it will no longer be economically worthwhile. X

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