May 2009 News

  • May 2009
    • NCR worst off shoring destination in India: Survey
      According to a new study eight cities in India are among the world’s 25 riskiest places for off shoring. These cities found place in the list specially due to the concerns of terrorism, pollution and geopolitical issues.The survey conducted by annual Black Book of Outsourcing states that the National Capital Region (NCR) which includes Delhi, Gurgaon and Noida was the worst offshoring destination within the country.
    • Citigroup to stay with TCS, Wipro, drop Infosys
      Citigroup, which sold its back-office captive centres to TCS and Wipro last year, plans to consolidate its outsourcing with these vendors in India, and drop others such as Infosys Technologies, India’s second-biggest software services exporter, reports Pankaj Mishra.The Bangalore-based Infosys could see around $25 million of its annual revenues from Citi go to rivals like TCS and Wipro, according to an official at one of these companies, requesting anonymity.
    • Telecom BPO revenue to touch $2bn
      Outsourcing revenues from the telecom sector in India are set to grow at a CAGR of 31% to nearly $2 billion in 2012, according to a first-of-its-kind study on the potential of the domestic BPO industry by Ernst & Young.Bharti has been growing at CAGR of 41% in the past two years. The telecom industry has been adding around 10 million subscribers every month with a subscriber base of 375 million in 2008-09.
    • Backshoring: Public Relations Strategy or Long-Term Business Strategy?
      Some U.S.-based companies, sensitive to the consumer backlash against offshoring, are cancelling their offshore outsourcing contracts and bringing work back home. Economists say that backshoring will help the U.S. and other foreign economies emerge from the recession much more quickly.These economists argue that backshoring or reverse offshoring, as the practice is also known, will help stabilize the world’s largest consumer market—the U.S.—as well as the world economies that depend on U.S. spending. They add that backshoring will also yield larger profit margins over the long term.
    • Offshoring: Why India is not to blame
      The current economic climate might have slowed the $50bn-a-year offshoring business, but it is still projected to grow at 10 per cent in 2009.At the same time, water cooler conversations are turning to help desk frustrations, growing rumblings about the quality of offshore software development, and increasing errors showing up in code.
    • SSTL gives outsourcing deal to Aegis BPO
      Sistema Shyam Teleservices Ltd (SSTL), a joint venture between Russia’s Sistema and the Shyam Group, is close to inking an IT operations outsourcing deal with Essar group-owned Aegis BPO.According to sources, SSTL will initially give the contract for eastern circle which includes Kolkata, West Bengal, Bihar and Jharkhand to Aegis.
    • Three top executives quit Satyam BPO
      Three senior support managers at Satyam Computer’s BPO unit have resigned.A company spokesperson said Satyam BPO Global Head (Human Resources) Naresh Jhangiani along with V Satyanandam (Head of corporate services) and Kulwinder Singh (Head of marketing- Asia Pacific) have resigned.
    • Level 5 eSCM-SP certification to Infosys BPO
      The BPO subsidiary of Indian software major Infosys Technologies bagged level 5 rating for the e-Sourcing Capability Model (eSCM-SP:V2.0) by Carnegie Mellon University’s IT services Qualification Center (ITSQC).Infosys BPO is the second company in India and third globally to be rated as a level 5 eSCM-SP provider. The certification states that Infy has implemented, recognised best practices for the eSourcing industry and has shown a sustained commitment to improvement. In 2007, the Infosys BPO was certified at level 4.
    • Telecom boom may ring in mega BPO deals
      BPO revenues from Indian telecom players have tracked the exponential growth of the telecom industry and rapid rise of new corporate giants, including Bharti Airtel. Outsourcing revenues from the telecom sector in India are set to grow at a CAGR of 31% in the next few years to nearly $2 billion in 2012, according to a study on the potential of the domestic BPO industry by Ernst & Young.Bharti has been growing at CAGR of 41% in the past two years. The telecom industry has been adding around 10 million subscribers every month with a subscriber base of 375 million in 2008-09. India’s largest mobile service provider, Bharti Airtel, which played a pioneering role by outsourcing many of its non-core functions in 2005, is changing the way Indian firms have traditionally run business and putting pressure on others to follow suit, the consultancy said in the study. Telecom revenues made up 50% of the domestic BPO revenues at $661 million in 2008.
    • Bringing outsourced work back to the U.S.
      Companies started outsourcing work to other countries to save money, but new technologies are making it possible to bring that work back to the U.S. Businesses are also beginning to note the hidden costs of exporting work and the backlash from U.S. consumers.
    • STPI withdrawal may hit Infosys, Wipro net profit
      Top Indian software exporters – Infosys and Wipro – have cautioned investors about a potential impact on their profitability because of higher tax rates, as the country’s over $40 billion IT industry prepares to cope with removal of tax holiday under the Software Technology Parks of India (STPI) scheme due to expire by March 2010.“Our net income would decrease if the government of India imposes additional taxes or withdraws or reduces tax benefits or other incentives ,” India’s third biggest software company Wipro said in a recent regulatory filing with the US Securities and Exchange Commission (SEC).
    • Infosys BPO to start hiring again
      Media reports suggest that India’s leading IT firm Infosys Technologies started hiring again for its BPo wing. Infy states business needs and new projects as reasons for hiring.Reports say that Infosys BPO has about 200 vacancies coming up on a month on month basis. K Raghavendra, the BPO Vice-President and HR Head said that the openings are at the entry level and the company plans to recruit for various processes across all service offerings.
    • Sistema Shyam Tele in talks with Aegis BPO, HCL for contracts
      Sistema Shyam Teleservices Ltd (SSTL), a joint venture between Russia’s Sistema and the Shyam Group, which offers mobile telephony services in four telecom circles in the country, is in talks with Essar-promoted Aegis BPO and HCL Technologies for multi-year BPO contracts for an undisclosed amount.One of the recent entrants in the Indian telecom market, SSTL offers CDMA-technology based telephony services in Kerala, Tamil Nadu, Kolkata and Rajasthan under the brand name MTS. Currently it has total subscriber base of 9.2 lakh.
    • Citigroup may increase business to TCS, Wipro
      Citigroup is believed to be looking at ways to trim its IT costs. This could spell good news for Indian IT vendors like TCS and Wipro who count Citi as their top client.The bank, which has been repeatedly bailed out by the US government, has undergone a major restructuring exercise of its business portfolio in the recent past. It is looking to integrate thousands of systems and cut down on application, maintenance and development (AMD) costs, said a source close to Citi.
    • Wipro may outsource work to Egypt
      India, the offshoring capital of the world, is now outsourcing software and back-office projects to Egypt as vendors like Wipro plan to send more domestic work to the most populous Arab country to leverage lower costs and availability of skilled professionals.Wipro, which counts Bharti Airtel, Unitech Wireless and Dena Bank among its top customers, said with 10-15 % lower costs than India, and availability of required technical skills across different programming languages including Windows and Unix, Egypt is emerging as an attractive location for offshoring.
    • Fidelity calls off India unit sale
      Fidelity Investments has called off the sale of its back-office unit in India. Sources close to the development have told ET NOW that the decision to put off the sale of the captive unit, Fidelity Management and Research (FMR), was taken by Fidelity’s executive management committee in the US, led by chairman Ned Johnson. The senior management team in India was briefed about the development on Wednesday evening and an official mail was sent.When contacted by ET NOW, the Fidelity spokesperson said: “After an intense review and thorough evaluation, it was decided that we will maintain the FMR India IT organisation at this time. It continues to be business as usual for FMR India.”
    • Genpact eyes 15% revenue growth
      Genpact, the only $1-billion-plus India-based BPO company, is confident of achieving a 10-15% growth in revenue for the calender year 2009 as provided in its guidance going by the traction it has been witnessing at the marketplace.Genpact registered a revenue of $1.04 billion for the year ended 2008 recording a y-o-y growth of 26% and had provided a topline guidance of 10-15% for 2009. “Around 80% of our revenue comes from non-discretionary spend of our customers,” said Genpact COO VN Tyagarajan.
    • Hiring in BPO/ITeS fell by 22% in April 2009: Naukri
      According to a study by Info Edge India’s job portal Naukri.com, the job market witnessed a fall of 4.7 per cent in new hiring in April 2009, as compared with a slowdown of 8 per cent in March 2009. Hiring activity in BPO and ITeS dropped by 22 per cent; however, Banking and Financial services saw an improvement in hiring activity by 4 per cent.
    • Swan to outsource IT, back office work to TechM
      New telecom entrant Swan Telecom is set to outsource its IT and back office functions to Tech Mahindra and award a network equipment deal to Ericsson together in a transaction worth about $250 million. The deal, the first of its kind in the telecom outsourcing sector, is aimed at bringing down operational costs and compete more effectively with incumbents such as Bharti Airtel and Reliance Communications (RCOM).”Swan has decided to retain the computer hardware part, and decided to bundle its IT and network management contract in order to avoid a high value outsourcing deal and retain many of these functions in-house,” said a person familiar with the matter on conditions of anonymity.
    • Australian banks plan to cut back IT offshoring ops to India
      Top Australian banks Westpac and Commonwealth Bank plan to curb offshoring of back office and IT projects to India in an attempt to address local sentiments over a shrinking economy and rising joblessness . The banks are likely to demand that more projects be delivered onsite.Westpac, which is Australia’s biggest bank by market value, is evaluating outsourcing vendors for a contract estimated to be anywhere between $200 & 300 million, and is demanding that more work be delivered from Australia instead of shifting jobs to an offshore delivery centre in India or elsewhere.
    • India retains top BPO destination tag: AT Kearney
      India continues to be the most favoured back-office of the world, but the West Asia and North Africa region is slowly emerging as a promising offshoring destination, global management consulting firm A T Kearney says.According to A T Kearney’s Global Services Location Index (GSLI), India, China and Malaysia have retained the top three spots since the last five years.“India, China and Malaysia continue to lead the index by a wide margin through a unique combination of high people skills, favorable business environment and low cost,” the report said.
    • Reliance BPO chief Virmani resigns
      Rajnish Virmani, president and chief operating officer of Reliance BPO Pvt. Ltd, has resigned, a person close to the development said.Reliance BPO is the Reliance-Anil Dhirubai Ambani Group’s (R-Adag), venture in business process outsourcing, or BPO. About 80% of Reliance BPO’s clients are R-Adag group companies, according to the firm’s website.
    • Nasscom wants the new govt to extend tax sops
      Software industry association Nasscom wants the new government to maintain the growth momentum in the IT industry through extension of tax benefits, removal of inequities and multiplicity of taxes like FBT.Nasscom chairman Pramod Bhasin said that specific policy initiatives like extension of tax benefits, specially for SMEs, and removal of inequities and multiplicity of taxes like fringe benefit tax (FBT) and service tax need to be pushed for.Bhasin stressed the need for developing public-private partnerships to accelerate implementation of the already approved e-governance programmes and increasing government IT budgets to provide a strong stimulus to the IT-BPO industry.
    • Speed Sourcing: The New Outsourcing Trend
      As companies search for new ways to cut costs in challenging times, many are looking to third party IT services providers to trim expenses. Some are moving at a measured pace through the traditional process of selecting an outsourcer and negotiating a contract. But others, EquaTerra says, are jumpstarting their potential savings by “speed sourcing”—a new approach for choosing a service provider and sealing a deal in three months or less.If you’re an IT executive whose boss is demanding a 30 percent budget reduction—again—speed sourcing is a persuasive proposition.
    • TechM to nest BPO arm in DLF towers
      Tech Mahindra, the new owner of scandal-hit Satyam Computer Services, is locating a brand new 1000-seater BPO unit at the plush DLF Towers in Kolkata’s eastern fringes. It is poised to conclude a two-stage acquisition of 50,000 square feet (sqft) of prime floor space at DLF Towers on a long term lease.When contacted, a senior Tech Mahindra executive told ET: “We will acquire about 50,000 sqft of floor space at DLF Towers on long-term lease in two stages. We’ve just taken 25,000 sqft and will acquire the balance shortly. We propose to launch our Kolkata BPO unit in the Rajarhat IT zone by mid-July as a 500-seater facility that will be scaled up to a 1000-seater facility in another nine months.”
    • Wipro Tech ties up with Oracle
      Wipro Technologies said on Monday that its Business Process Outsourcing divison, Wipro BPO has partnered with Oracle for ‘best-of-breed HR platform solutions.’Wipro has also selected The Hackett Group, a global strategic advisory firm, to provide empirical data, best practices and world-class performance insights on the development of its innovative bundled solution platform, it said in a release here.The solution simPlify, allows employers to reduce and control cost as it provides an opportunity to centralise and standardise processes while eliminating duplicative management structures.
    • Aussie Westpac team in India to discuss outsourcing plans
      A team of experts of leading Australian financial firm Westpac is reportedly in India to discuss their future offshoring plans with about eight Indian business process outsourcing firms, including Infosys and TCS.According to The Australian report on Monday, it was understood that the bank’s top technology executives have travelled around India over the past two weeks to meet with about eight outsourcing companies.
    • Aegis buys Aussie BPO for Rs 200 cr
      Essar Group-owned BPO Aegis has acquired Australia-based UCMS Group for $40.7 million (Rs 200 crore). Aegis’ Australian affiliate, Aegis BPO Services Australia, will pay UCMS shareholders $0.68 per share, which is a 133% premium over Thursday’s closing price, the company said on Friday.With this acquisition, Aegis will add 2,000 UCMS employees with the combined entity having a staff strength of 35,000 spread across India, the Philippines, the US, Costa Rica, Kenya and Australia.
    • More companies outsource to India now
      Indian IT companies have found a silver lining in the midst of the global economic turmoil. The number of clients that are outsourcing their technological requirements has seen an increase in the past few months. This comes on the back of the companies’ need to curb costs and yet remain competitive with their global peers.Those adopting the outsourcing practice are a handful of small companies located in the US and also some based in continental Europe. These companies, which earlier preferred only local IT vendors are now shifting their IT needs to Indian players like Wipro, Cognizant, Mindtree, Syntel and WNS.
    • Aegis to buy Australia’s UCMS Group
      Essar Group’s back office arm Aegis Ltd has agreed to buy Australian business process outsourcing firm UCMS Group Ltd in a cash deal worth about A$54 million, the firms said in a statement on Friday.Aegis, through affiliate firm Aegis BPO Services Australia Pty Ltd, will pay UCMS stockholders A$0.98 per share, a 133 percent premium over Thursday’s closing price of A$0.42 per share, they added in the joint statement.
    • R&D Offshoring to grow at 23% by 2013
      Majority of these R&D centres in India are now looking at every single cost component to optimise their investments, the study said, adding, that R&D offshoring market will grow at about 23% by 2013.The slowdown in the global economy, along with the depreciating rupee against the US dollar, have seen a reduction in the operational costs of captive IT R&D centres in India, according to a study.
    • Number of women working in IT-BPO sector up 60%
      The number of women working in the IT-BPO sector grew 60% in the last two years to 6.7 lakh in 2008, as per a survey on gender inclusivity conducted by HR consulting firm Mercer and IT association Nasscom.The survey that covered over 45 leading technology companies in the country also revealed that HR practices such as transportation policy of a company besides flexible working hours and leave policy play a major role in attracting women in an organisation. Other practices that women workers appreciate are anti-harassment policy, healthcare and awareness programs, women’s lounge or recreational activities.
    • Indian e-learning outsourcing biz to touch $603 mn by 2012
      The e-learning outsourcing business in India is likely to grow at a rate of 15 per cent annually for the next three years to touch 603 million dollars by the end of 2012, a study says.According to a study by business intelligence and research provider ValueNotes, the e-learning outsourcing industry will suffer the impact of the global economic recession for the next 6-8 quarters but growth is likely to pick up after that.
    • Global clients increase IT outsourcing to Indian companies
      Indian IT companies have found a silver lining in the midst of the global economic turmoil. The number of clients that are outsourcing their technological requirements has increased in the last few months. This comes on the back of the companies’ need to curb costs and yet remain competitive with their global peers.Those adopting the outsourcing practice are a handful of small companies located in the US and also some based in continental Europe.
    • Nortel Sets Up Network Operations Center in India
      Nortel Networks said Tuesday that it has set up a Global Network Operations Center (GNOC) in Bangalore, to help remotely manage and support the networks of its carrier and enterprise customers in Asia, Europe, North and South America.The Bangalore GNOC provides round-the-clock network surveillance and performance monitoring for voice and data networks, Nortel said.The new center in Bangalore is Nortel’s fifth network operations center worldwide. Nortel’s other network operation centers are located in North America, Europe, China and in Gurgaon in north India.The Gurgaon center services customers both in India and abroad including Indian telecommunications service provider, Bharti Airtel, said Suresh Kumar, vice president for Managed Service Delivery at Nortel Asia Pacific.
    • IT-BPO: Is it the end of a dream run?
      India’s software and IT enabled services industry has had a dream run till now, capturing by 2008 a 51 per cent share of the global market for sourcing of technology and business services. But it now faces the biggest challenge of its lifetime.The world around the Indian IT-BPO industry is rapidly changing and it will have to transform itself extensively even to stay where it is.
    • If businesses focus on core, outsourcing will stay
      Having spent the first 90 days meeting employees and key clients, Jeya Kumar, new CEO of Patni Computer Systems [Get Quote], is clearly in control. While he acknowledges concerns due to the current slowdown, he has started restructuring the company
    • Obama’s tax will not impact BPOs: E&Y
      Domestic business process outsourcing (BPO) units providing services to the American companies will not be affected by the proposed decision of US President Barack Obama to discourage outsourcing by imposing taxes, said global consultancy firm Ernst & young.”The companies which outsource business to third parties will not be impacted (by the proposed tax move),” said Ernst & Young Tax Director Rajendra Nayak. However, he added, the US companies which outsource services from their own arms including wholly-owned subsidiaries might face the heat of Obama’s tax proposal, which is yet to be approved by the US Congress.
    • Offshoring as a business option will continue to grow
      Last week, US President Barak Obama’s tax policy reforms speech stirred a hornet’s nest with the whole global outsourcing business worried about its impact. Post the attack on tax havens and the talk of creating jobs in Buffalo, American multinationals are trying to figure out what to do next – to expand or not, in the low cost, high quality bases overseas or ship jobs to third-party providers such as Infosys, Wipro, TCS, HCL and others. On the other hand, local companies are trying to figure out what will work best – expand at home or open some centres in Buffalo, New Jersey or Ohio to assuage American feelings. The latter are more expensive than India but cheaper than New York, San Francisco or Silicon Valley.
    • How a Pennsylvania Company Competes with Bangalore
      When President Barack Obama pointed to Bangalore this week in his effort to keep companies from ” shipping jobs overseas” through tax breaks, he picked an Indian city that is a worrisome symbol to U.S. tech workers.PC Helps Support LLC, a company based in the seemingly unpronounceable Pennsylvania village of Bala Cynwyd ( pronounced Bala, as in “gala,” Kinwood). The company is nowhere near the scale of Wipro, but it can recognize opportunities.
    • Layoffs at Satyam set to begin with BPO unit
      Tech Mahindra, after gaining control over the troubled IT major Satyam Computer Services, seems to be getting straight to business.The company intends to downsize operations beginning with the business process outsourcing arm Satyam BPO (formerly called Nipuna).
    • Adlabs Films forays into BPO industry
      Anil Dhirubhai Ambani Group (ADAG) owned Adlabs Films announced on Thursday, May 7 its entry into BPO for film industry. In a statement released in Mumbai, the company said that BPI would be a one-point solution for the transition from analog to digital and physical media to digital data.Anil Arjun, the Chief Executive Officer of Adlabs Films said, “The globalisation of media services is well underway. The comprehensive services of the media BPO enable a distinctive and complete offering to Adlabs worldwide clients.”
    • We expect a 5-15% drop in prices: Gartner
      The overall IT outsourcing market is slowing down but some segments like infrastructure and Business Process Outsourcing (BPO) are still showing positive traction. Richard T Matlus, VP Research, IT sourcing and services, Gartner, says that India is well positioned to gain major marketshare in the infrastructure outsourcing space as corporates are pushing more work outside to cut costs. However, this time around the challenge may not be just to cut costs but to provide innovative service delivery.
    • Obama tax to hit US companies’ competitiveness: PwC
      US president Barak Obama’s tax proposals on the foreign investments made by American companies, if approved by Congress, could affect their global competitiveness and would leave them at significant disadvantages against non-US companies, said PriceWaterhouseCoopers, in a report on new US international tax proposals.The proposals, the report said, sought to make far-reaching changes in the tax regime governing US MNCs, including changes in the ability of US corporations to defer tax on foreign earnings. US business community is sceptical about these proposals, the report said.
    • Up for grabs: Bharti’s $2b network outsourcing deal
      India’s largest mobile company Bharti Airtel’s over $2-billion network outsourcing contract will be up for grabs soon.With its current multi-billion-dollar network outsourcing deals with equipment majors Ericsson and Nokia Siemens Networks (NSN) up for renewal next year, the telco will start inviting bids from global equipment vendors in the next couple of months. According to people familiar with developments at Bharti Airtel, Ericsson and NSN will not be guaranteed an automatic extension, and will have to compete with other potential bidders.
    • Premji calls upon Obama to ‘exercise judgement’
      Wipro’s chairman Azim Premji has expressed ‘concern’ over the protectionist measures of the Obama administration saying that the steps proposed were contrary to the vows made by Barack Obama in the G20 summit.Speaking on the recent reforms in the corporate tax in US, Premji said on Thursday, May 7, “We are reading too much into it…one needs to wait and see.”
    • Avitel bags Rs 150 cr worth animation orders
      Avitel Post Studioz Ltd an integrated post production service company on Thursday, May 7 announced its decision to foray into the animation arena. The $150 million net worth company bagged its maiden project ‘The Final Goal’ from a Britain based film production company, Purple Passion Production Ltd.This project is the first cross over animation flick that will have its entire creative duties done by an India company right from scripting to delivery. Aiming to cater to mass audience demography, Avitel has developed a potential concept bank of original scripts that tune to internationally marketable genres like comedy, action & adventure, musicals, sci-fi thrillers, fantasy, family and drama. Avitel will also deliver end-to-end high quality animation features to domestic & foreign studios and independent investor firms.
    • Hewlett-Packard-owned EDS closes in on Fidelity BPO
      Hewlett-Packard (HP)-owned EDS is leading the race to acquire Fidelity’s IT captive operations in India in a transaction worth roughly $150 million, three people close to the development said. ET has also learnt that the deal is expected to close in 3-4 weeks, with EDS securing a long-term outsourcing contract worth over $500 million from Fidelity, the world’s largest mutual fund company.Fidelity is also a significant client for Infosys Technologies, with over 3,000 employees working on the account. The domestic tech giant secures roughly $50 million annually from the contract. People familiar with the discussions said Fidelity could consolidate its outsourced work, if a deal with HP-EDS combine is concluded.
    • Obama Tax Plan Unlikely to Prevent Offshoring
      President Obama unveiled tax code changes Monday he said could curb offshoring, but analysts and tax experts believe the plan will have little to no impact on the megatrend that threatens as many as one-in-four IT jobs at large companies.The criticism boils down to this: It isn’t the tax code that created the offshore outsourcing industry over the last decade; it’s the low cost of highly skilled labor.President Obama didn’t address the wage gap today, but he is arguing that the tax code has played a contributing role in the growth of offshoring, and that includes high-skilled outsourcing.
    • India Inc blasts Obama’s view on outsourcing
      India Inc on Tuesday described the United States President Barack Obama’s announcement to punish American firms by levying high taxes on their outsourcing business as ‘protectionist’ and a retrograde measure that, it said, will hurt the US companies.
    • Obama’s Tax Reforms: ‘We will survive’ say BPOs
      After Barack Obama announced the tax reform policy that were seen to have repercussions on the BPO and other outsourcing industries in India, India Inc has expressed confidence that BPOs will survive despite the reforms.”It’s a more US-US issue rather than one aimed at stopping outsourcing, or off-shoring, or anything to do with India,” said Som Mittal, president of the National Association of Software and Service Companies (Nasscom), a representative for the industry.
    • Publishing BPO industry to cross $1.2 bn by 2012
      A recently released report by ValueNotes estimates that the Indian publishing BPO industry is expected to grow to a value of $1.2 billion by 2012.This growth is expected to come from rise in the number of publishing companies that will outsource – which include traditional segments such as STM/Academic, Educational and Legal Publishing, as well as new segments such as magazines, corporate and B2B publishing.
    • Obama’s protectionism: Infosys does not see any immediate impact
      President Barack Obama’s proposed removal of tax incentives for American companies outsourcing jobs could mean that large outsourcing customers such as GE and Citibank might have to pay certain taxes on their income from international markets, making it less attractive for customers to send IT projects to cheaper offshore locations such as India.On Monday Obama reiterated his anti-outsourcing rhetoric once again, and said that American companies shipping jobs overseas will be required to pay more taxes, and that tax-deferral benefits for such companies will be ended. “It’s a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York,” Mr Obama was quoted as saying by news agency Bloomberg.
    • Outsourcing customers to pay taxes on income
      President Barack Obama’s proposed removal of tax incentives for American companies outsourcing jobs could mean that large outsourcing customers such as GE and Citibank might have to pay certain taxes on their income from international markets, making it less attractive for customers to send IT projects to cheaper offshore locations such as India.On Monday Obama reiterated his anti-outsourcing rhetoric once again, and said that American companies shipping jobs overseas will be required to pay more taxes, and that tax-deferral benefits for such companies will be ended.
    • Barack Obama torpedos Bangalore — again
      Not for the first time, US President Barack Obama invoked India’s much-celebrated economic hotspot, which has become an all-encompassing metaphor to describe everything from job loss to globalization, to rally Americans for a protectionist cause.At a White House event on Monday to unveil tax reforms aimed at forcing American multinationals to pay corporate taxes — and keep jobs — at home, Obama lashed out at the current US system, saying it encouraged paying ”lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York.”
    • Say no to Bangalore, yes to Buffalo: Obama
      ‘Say no to Bangalore and yes to Buffalo,’ seems to be the latest mantra of United States President Barack Obama as he struggles to bring the ailing American economy back on track.Meeting one of his major election promises, Obama on Monday the announced end of years of tax incentives to those US companies which create jobs overseas in places like Bangalore.Instead, the incentives would now go to those creating jobs inside the US, in places like the Buffalo city — bordering Canada in upstate New York.
    • Obama reforms tax policy, may hit outsourcing
      Keeping on of the biggest election promises he made, Barack Obama has declared to end the tax incentive to those US companies which create jobs overseas and instead provide these incentives to those creating jobs inside the country.These new tax laws will hit country like India and China as the outsourcing revenues which form a significant part of the economy are bound to be adversely hit.
    • BPO employees will vote despite night shifts
      Scorching heat and graveyard shifts of BPO employees have not snubbed the voting spirits of Delhi BPO employees. The BPO employees will be casting their votes on May 7, the Election day though its not a holiday.Some of the employees have a slight dissatisfaction that they will not be casting their votes with their families. Aditi, a BPO employee will have a night shift of 10 pm to 8 am. But she is determined to vote after she returns to home, though she will not be casting her vote with her family. “Will be casting my vote at 9.30 am”.

Also see news archives




Latest Columns

Top 10 business trends to watch out for in 2013

Experts predict that over the next one year there will be a tremendous redistribution of social and economic power world-wide. This power is expected to shift from the traditional organizations which have failed to deliver to those individuals, communities and businesses whose leaders undertake timely action based on the changing trends. Forecasters, Tracey S. Keys, […]

Indian IT industry to hit $100 billion revenue by March 2012

February 21, 2012: The Indian Information Technology (IT) industry is estimated to grow at 11 to 14 per cent in terms of export revenue in the FY 2012-2013. The total revenue of the industry is expected to reach USD 100 billion towards the end of March 2012. These projections were made by NASSCOM regarding the […]

Speak Your Mind

*