Boo-Fucking-Hoo..India Attacks U.S. For Stopping Outsourcing
 

India attacks US on plan to ban outsourcing
By Khozem Merchant in Mumbai
Published: January 25 2004 19:11 | Last Updated: January 25 2004 19:11


India's technology industry has attacked proposed new US legislation that bans the outsourcing of federal work to low cost countries arguing it is a protectionist measure contrary to the spirit of free trade.


The move by the US Senate coincides with decisions by a number of foreign companies to halt further outsourcing to India because of a new domestic tax ruling that would enable the Indian government to tax part of their worldwide earnings.

The US bill, which was passed by the Senate of Friday but has still to be signed by President George W. Bush before it becomes law, is the most significant attempt to stop outsourcing, a fast-growing industry trend that has led to the loss of thousands of highly-paid technology jobs in the US and become a hot political issue in a US election year.

Although US federal contracts account for only 2 per cent of India's IT earnings, the bill sends a worrying message to the Indian outsourcing industry, which has been lobbying hard to stave off protectionism.

Arun Shourie, Indian's information technology minister, said the bill damaged the outlook for talks on freer multilateral trade. Kiran Karnik, president of Nasscom, the umbrella body for Indian IT, said he "hoped wiser counsel would prevail" before the law was enacted.

The revenues from India's technology industry are forecast to expand by a third to $15.5bn in the year to March, with two-thirds of the growth coming from the US, as more companies in North America and elsewhere leverage India's high IT skills and low costs.

But US companies such as JP Morgan and General Electric, which have outsourced thousands of jobs to India, could be casualties of the controversial rule on the taxable status of foreign companies' outsourced units. This week Nasscom said three unidentified foreign companies with back office operations in India had frozen future outsourcing until "there was clarity".

The government circular, which is binding on the tax-collecting authorities, says a foreign company's global income would be taxable under India's double-tax treaties if that company's outsourced unit in India carries out "core revenue-generating activities." Non-core activities conducted at arm's length and at fair market value would be exempt.

Accountants say the ruling introduces artificial distinctions between core and non-core work. "This raises technical ambiguities that could lead to litigation," said one tax expert.

Experts say an accepted principle of global accounting norms is that double-tax treaties override domestic tax regulations. Foreign companies could therefore appeal to double tax pacts, which prevent the imposition of taxes from different countries on the same business, to circumvent the circular.

Nasscom has protested to the Indian government, arguing the measure is contrary to the government's tax-friendly stance towards a nascent, job-creating industry.

WOOOHOOOOOOOOOOOOOOOOO


I'm all for it. The tech job market is getting worse by the second bec. of outsourcing like that. FUCKERS.

Now I can relate to the blue collar guys hating mexican laborers.

Gorny,

But didja notice how it wasn't the fact that American workers were losing their jobs, nor protecting the good Indian workers from gangsters in their government stealing their shit that stopped the outsourcing, it was the double-dumbass tax thingie that put a halt to it.

Goes to show you it's about money.

let them stick to selling Slurpees

http://www.madbeast.com/images/slurpee_pour.jpg

outsourcing sucks


it is just going to become a bigger trend unless it's stopped!

I like how Lou Dobbs points out who is outsourcing on his show...

the economy is recovering supposedly but without jobs.. I wonder why

Mojo, of course the economy is rising. It had already hit shit then 911 happened and it went from shit to shit squared. Interest rates dropped faster than Paris Hilton's panties and the govt. can now shut people up who complain.

When your shit hits the bottom of the well the stink has no place else to go but rise.

If companies want to stop outsourcing to India whatever the reasons, that's all good to me but actually going and creating legislation to stop corporations from doing that is "contrary to the spirit of free trade" and isn't exactly compatible with that whole globalisation shit.

Nevertheless, the government shouldn't get into the corporation's business. If it wasn't for big corporations the US and other countries would be in deep shit. The corporations will take there revenge sooner or later. Call me whatever you wanna call me but I'm all for corporations.

Depends on your perception of the bottom of the well. My personal view is that we are in a deflationary period. The D word is verboten from all politicians of course. Changes things considerably.

That aside, I just don't like outsourcing because of the loss of jobs and the downward pressure on high tech wages in the US.

Outsourcing Sucks...yea right tell all our AMERICAN clients that who love it.
Outsourcing will always be here and people who have there head screwed on will take advantage of using outsourcing to their benifit.

Take your blinkers off and see the bigger picture, the US Goverment see it as a problem cos they are not making any $$$$ from it....YET.

Very good point.

I'm surprised our conservative governement is in favor of stopping outsourcing. I thought it was good for big business and bad for working Americans. That makes no sense.

yeah the few rich like it as opposed to the many middle class or poor that don't

Usually when there's an economic recovery, there's a growth in jobs.. not this time thanks to outsourcing .....

What's good for business is good for Americans.

it makes sense that GOVERNMENT work is not outsourced. that's the taxpayer's money not private corps' tax money should pay for local jobs. if private money, they can do whatever they want. just my :2 cents:

Oh sorry missed the GOVERNMENT work part. In that case, yes I'm all for it. It's their decision afterall.

Fuck India... 'nuff said.

I think there should be a law that makes executives move to the countries they outsource too

Funny guy. With lots of money, anyone would live like a king, doesn't matter wether you go to Zimbabwey or whatever crappy country.

I support outsourcing. Protectionism is crap.

So if you could get a product a service cheaper from somewhere else for the same thing do you
A) Buy the more expensive one "so you can keep someone in a job"
B) Get the better deal that saves you and your company money?

It's not about the class that like it or don't, it's business and your in the big boys world now.

It's differant when companies exploite young kids to work in factories in china and make another country rich then you don't give a dam, but when the Asians start coming right back at ya you gotta complain.

It's easy to blame blame blame on someone else or something else and then you wonder why your not sucessfull.

Sound like you have excusitis...

No, fuckrake, it's when someone who doesn't condone it from ANY country regardless of where it's located that it sucks.

But then, not having a moral compass seems to be your bag of tea.

I'd prefer ALL sweatshops were closed down and pay the higher prices. Perhaps that's something you cannot comprehend...

Right on Darksoft!

We should elect Mojo for President! That's the best idea to come along in a long time.

You're missing the point. Those parts of the economy have "matured"... its time to retool and retrain for more lucrative/more innovative portions of the economy.

Outsourcing will eventually wreck a large part of all western economies. It's inevitable, nothing can be done about it.

Aw keep your shirt on xxxoutsourcing.

We're not against outsourcing. It's good business and a great way to contribute to world economics and amnity.

The PROBLEM is that those AREN'T the reasons it's being done by companies here in the U.S.

They're not outsourcing for our good nor your good, just THEIR good.

What you have to look at is what has happened during the past 100 years every time we've outsourced. I'll give you a few examples:

WORLD WAR I

WORLD WAR II

THE KOREAN WAR

THE WAR IN VIETNAM

THE IRANIAN HOSTAGE SITUATION

THE GULF WAR

THE GULF WAR II

and today's latest ROI ( return on investment )

THE AFGHANISTAN AND IRAQI WARS.

See, the problem is we have in America companies and individuals who amass great wealth yet are psychologically unstable. They're superstitious,sexist, bigotted, arrogant asswipes who look at other countries and cultures as their private stomping grounds.

Remember the French and the meaning of the word 'sabotage' ?

So that's what I'm beefing about. It's the real reason behind the outsourcing and the inevitable disaster that occurs if we all don't hold these companies and countries accountable for their intentions, actions and results.

If we do that then the workers, investors, consumers will benefit from the proper form of outsourcing that benefits us all.

Now, do I have to break out my 'Mr. Whoopee' 3D Blackboard?

the reasons for this happening are obvious
us economy doesnt do that well

protective laws can be helpful

doesnt mean i support it

:1orglaugh

When talking about economy -

Export of goods and services = good, money is coming into the country boosting the economy. You're getting money for goods and services sent overseas, putting more money into the economy.

Import of goods and services = bad, money is being spent overseas taking money out of the economy, leaving less money for everyone here, and meaning there's less jobs because the jobs are being filled overseas.

In economic terms, outsourcing is a bad idea when speaking economy on a national level. It might be good for the company that's doing it, their costs are down and their profits up, but as far as a country is concerned, it just leads to a bigger recession.

The only way to beat it is to move to the country that's getting all the contracts - in this case, India, or wherever it happens to be next, the Phillipines I guess. :2 cents:

Stop.......whining and train the Youth in your country to be better programmers! Instead of them Smoking POT and getting into DRUGS!

the education system in India even though not the best at the Primary level or school level.......is far far ahead when it comes to Education at the University level or Technical education!

Indians are strong in Maths and Basic sciences! No wonder they are doing well! :)

Go fuck yourself! biatch! :321GFY

Lazy bastard!
its ppl like you thats making your currency i mean the DOLLAR fall! :321GFY :BangBang:

Well said Ben,

That's what the outsourced countries don't understand. Yeah they'll suck up to get those american dollars and jobs but at what sacrifice? The U.S. isn't the ONLY country with a history of organized crime. We just like our gangsters better because they dress well.

Yet in other countries like India, you've got to have the care and respect of the citizens who are going to do these outsourced jobs. Are they getting fair pay, health care, etc. Or are they gonna end up like every other country we've outsourced to where the laborers live in sweatshops, fire hazards, chained to tables and overworked.

That's all I'm beefin' about. Because the money we send over seas usually ends up in the pocket of a kissass politician, or military guy or royalty who ends up making billions upon billions, fucks over his people then we have to drop what the fuck we're doin' to go spend billions upon billions of dollars to blow his sorry ass to smithereens.

It's that never ending cycle of outsourcing without responsibility.

Plain and simple.

So.. xxxoutsourcing, it ain't about bigottry or protectionalism, it's about decent human conduct on all counts.

Your Generalizing a tad there, we provide a service and it's being condoned from many countries.
You pay your high prices for your webmasters, designers and programmers and we will play it smart like the clients and use this excellent opertunity to evolve profitably....

Ohhh and talking of morals, what industry was this again???? HELLO.

You'll find that outsourcing does the west a favour and makes the US and Europe develope even better.

Can't see the wood for the trees hey man...

I outsource and i'm in the country we outsource from and fucking love it here.
BTW it's not India.

Wrong answer, dumbass. Outsourcing doesn't help the US economy at all. But then if you had half a brain cell you would know that.

Granted, the majority of the adult industry has no morals but does that mean they shouldn't exist? I don't think so.

Glad I'll never need your brand of "help".

i hope this doesnt affect my indian visa application, i have to go there

thats great news

This has NOTHING to do with pot and drugs, and everything to do with what a person's time is worth.
To put it simply, it is NOT worth anyone's time to work 48hrs per week for a measly $200 per month in the USA.

That's $1.04 per hour - before taxes. Comes down to about $0.80 cents per hour after taxes.

48 hours is more than a full-time job, and you can't live on $200/mo.

If they *can* in India, more power to them. You just can't do it here - which is why the cost of a programmer here is so much higher.

My partners and I operate a studio and distribution warehouse, we pay well over 3k a month just on our physical location, not to mention the fucking over-inflated prices for every other service which is required to keep this thing flowing.
If these Indian cats have the knowledge and resources to do our work on the net, and willing to do it for a fraction of what an american service would cost, then we have no choice.
The active term here "OVER-INFLATED" the american economy is screwing itself over.
Im proud to be an American, but it is no secret, greed is getting the best of this economy.

Greed is good. :thumbsup