Dealing with worst recession since 1929, with unemployment rate reaching an all time high in a quarter century, everybody acknowledges that in these times of joblessness, the toughest job is that of the president of the United States. America and the rest of the World are closely and eagerly watching as to how he will ride this recession.
Apart from the controversial/arguable huge stimulus plan, some of the major plans being proposed like ‘Buy America’ clause, disallowing the bailed out companies to hire H1B employees and the recent tax plans to curb the outsourcing, aimed at bringing America out of shambles and facilitate American workers with more jobs may not prove to be the prudent steps and may well not serve the purpose intended.
The so-called "Buy American" clause in the $900 billion stimulus plan would have made it mandatory that only U.S.-made goods be used in projects funded by the bill. Many argue that American companies are having a competitive edge by hiring foreign workers and every such job in turn creates more jobs for American workers and many see the latest taxation claim hurts American companies more than the outsourcing destinations and they may well end up paying 70% of their revenues in taxes and will struggle over finding cost competitiveness. Also, most of the large American companies have more than 50 percent of their revenues coming from markets outside the US and would be affected by the proposed tax reforms.
Americas success story can be attributed to it being one of the largest free markets and all such measures are being viewed as Protectionist and “Populist” postures and may even back fire and deepen the recession Worldwide.
While the Indian IT sector can lobby the US on all these points, it is right time for the industry to seize this opportunity to look inwards where a huge domestic market awaits it and also focus on other destinations, gradually reducing its high dependence on US, insulating ourselves from the cold when US sneezes.
- Vikranth
Apart from the controversial/arguable huge stimulus plan, some of the major plans being proposed like ‘Buy America’ clause, disallowing the bailed out companies to hire H1B employees and the recent tax plans to curb the outsourcing, aimed at bringing America out of shambles and facilitate American workers with more jobs may not prove to be the prudent steps and may well not serve the purpose intended.
The so-called "Buy American" clause in the $900 billion stimulus plan would have made it mandatory that only U.S.-made goods be used in projects funded by the bill. Many argue that American companies are having a competitive edge by hiring foreign workers and every such job in turn creates more jobs for American workers and many see the latest taxation claim hurts American companies more than the outsourcing destinations and they may well end up paying 70% of their revenues in taxes and will struggle over finding cost competitiveness. Also, most of the large American companies have more than 50 percent of their revenues coming from markets outside the US and would be affected by the proposed tax reforms.
Americas success story can be attributed to it being one of the largest free markets and all such measures are being viewed as Protectionist and “Populist” postures and may even back fire and deepen the recession Worldwide.
While the Indian IT sector can lobby the US on all these points, it is right time for the industry to seize this opportunity to look inwards where a huge domestic market awaits it and also focus on other destinations, gradually reducing its high dependence on US, insulating ourselves from the cold when US sneezes.
- Vikranth
its time for Energy Technology
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