When the US president Barack Obama has served notice that he would end the tax breaks for corporations that ship jobs abroad, a mixed blessing has been come out to the reaction of this dialog. However, it may help to many different aspects as per economical perspective but still need lot of interaction regarding economic up gradation on it. Let us discuss about some consequences…..
It may be unfair to all the US MNCs for their profitability as it may affect them considerably. Every additional dollar that US makes should invariably contribute towards more jobs in their country. Therefore, it is a big question here.
If we think that they cancel issuing work permits to skilled resources, then those jobs will also go to Americans. Important to note that these are expensive resources and it would affect profitability.
If outsourcing is stopped then, all companies in developing economies that are dependent on US today, would have shed their baggage and would have moved their business elsewhere.
Furthermore, most products made in the US don’t get consumed in the US and close to 90% of it gets exported. US definitely is not a self sustaining economy. Americans are not used to living frugally(relatively), whereas the developing countries or the so-called third world countries have seen difficult times in the past and will manage. This may directly impact on the present situation.
The success with which an in-house team can be restructured to provide the right retained team to manage an outsourcing deal often depends on the maturity of the CIO and whether they’ve been through outsourcing before, says Hans Muskens, director of transformation outsourcing services at IT and business services supplier Logica. Muskens adds, “People in the traditional IT department tend to be more technically oriented and can’t always provide all the relationship skills you need when outsourcing. A CIO who has been through outsourcing before will understand up front what extra skills they need to bring in.”
However, regarding the discussion and its consequences we are in perplexed to find a coherent solution of predicted results. Undoubtedly it is uncertain to predict. As we know that adopting application development outsourcing should not only be a quest for cost reductions, it should also establish a framework aimed at creating continuous improvements. It enables your business to leverage the combined benefits of IT Outsourcing (ITO) and Business Process Outsourcing (BPO) by adopting a unified view of your processes and applications. Most importantly, there are four primary reasons to why many companies are outsourcing their application development: To manage growing complexity; To keep up with the impact of the Internet and e-business; To get the capabilities to deliver a range of IT services worldwide, and to manage risk. Therefore as a whole every where many questions arise to tackle as per Obama’s statement.
Source: Internet
