Today’s news article mentions the tax breaks announced by the Obama govt for the companies and the sectors which rely on insourcing. The word insourcing seems ile a new creation and the definition is nothing more than it being the opposite of outsourcing!
Now, we do know that US has been grappling with certain problems of heavy unemployment, probably its worst since the great depression. Continuing with the protectionist tendencies, US mentioned hike in the visa fees a couple of years ago. This was endorsed by their policies which introduced tax breaks for companies which relied on the in house talent. In other words, companies which employed only the locals got further tax cuts and benefits to add on to. Now there has been a coinage of a new word called insourcing. The list continues till they have reached the insourcing phenomenon now! The list would probably continue with the president trying to appease the local workers.
Is this move targeted against India?! We being from this part of the country would obviously feel so. But the truth extends to a wider perspective. Why would the US care as to how their policies would make a difference to a third country from which there is no direct threat of economic opportunities? US doesn’s have much to lose. We being an economy which is largely dependent on the service sector stand to lose in this front. However it is just one part of the story. We have seen US take a lot of such deterrent measures to curb outsourcing. Even when Obama coined the statement saying that they want to prevent the phenomenon of the jobs being Bangalored, the threat was as imminent as it seemed to be now. But the facts remain the same. Whether it is the tax breaks or not, the fact is that it works out a lot cheaper to get the service sector functioning from a third world country like us. Even if it seems like a move against India, it hardly is the case and India would keep on continuing to be a destination for the outsourced jobs except for some competition from China which certainly has a lot of catching up to do. Well we could probably talk about that some other day. For now, lets just say, tax breaks or not, the phenomenon of the jobs being Bangalored will continue for a while 🙂