read this - US protectionism may help India
this is s very interesting take on protectionism. the tax-breaks if revoked would not only benefit india by making indian cos more competitive, they would create more business for indian service providers e.g. - the tax-breaks would affect a finance co which offshores jobs to its india unit; so this co would simply outsource the jobs to an indian service provider!
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6 comments:
Jai Ho
well I have a different opinion..wen u say the govnmnt in a protectionism mode..u cant really hope theyll be much into offshorin as well..the denial of HB1 visas means a loss of substantial revenue for the US govnt..bt they r still up fr it..which means tht they r ready to bear losses to curtail the job crunch..in that case..th indian companies will definitely suffer..
@paru da: yeah! :)
@ritika: 1500-2000 USD is what one h1b costs; all put together they would amount to a few hundred million dollars - thats small change for the US govt! it has doled out several hundreds of billions in its bailout packages. there's not been any change in the # of h1b visas being issued...in fact there's no demand for them this yr! for the last 2-3 yrs, the # of applications received on the first couple of days used to be more than twice the quota...this yr the quota has still not been exhausted even after 2 months of it being open!
offshoring/outsourcing helps cut costs and is important for Cos on the verge of bankruptcy.
But yes :) this is only a theory........it does make some sense though! ;)
there's not been any change in the no of of h1b visas being issued...!!..wat about the stimulus bill then..?? and has'nt their been a capping at the number of visas issued per year by the govnt..and wen u talk about lesser applications for the H1B visas..tht cud be because the ongoin recession has made business slow in US..considerin which..the companies are on a downsizin mode..hence..lesser employee postings in the country also expatriation cost more..ths the companies cud be lukin to be on cost cutting mode and tryin to aquire local talent....I cud be wrong ofourse..bt thts wat I think.. :-)
@ritika:
:) there've been no changes to the h1b quota since 2003....yes, the stimulus bill reqd that Cos taking stimulus money cannot fire an american to hire a h1b...but it didn't say anything abt these Cos outsourcing that job to another Co....so Cos can outsource jobs to consultancies which may then hire h1b guyz for the job.
yes, the recession is the reason h1b visas are still available...but the point i was trying to make was that the cap on the # of visas is not limiting outsourcing/off-shoring.
Local talent is much more expensive than a h1b guy and so doesn't save on costs!
but yes...the Cos that have been talked of in the article are not gonna take this lying down...they'll find ways to remain competitive and not get sold out! :)
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