New Tax Rules Expected For Companies Outsourcing to India
The Finance Ministry of the Congress led coalition government, is likely to come up with a comprehensive rule for companies outsourcing to India. This will be in response to Nasscom’s representation on taxing companies outsourcing to India. The Central Board of Direct Taxes may come up with a clarification on the taxation of foreign companies outsourcing to India, before the new government presents the budget.
Nasscom wanted further clarification on whether the non-core activities of foreign companies outsourcing to India, should be taxed or not. This is a significant move, as companies outsourcing to India are slated to grow to 65% while earnings are expected to touch 3.0 billion dollars in 2004.
The scenario was complicated by the Vajpayee Government, which issued a circular stating to provide tax exemptions to companies outsourcing to India, in certain situations. According to the principles of international taxation, the foreign companies outsourcing to India became taxable on small and significant incomes in India.
Jesmine
Wednesday, May 26, 2004
Friday, May 21, 2004
Outsourcing To India To Rise 50% in 05
American companies have decided outsourcing to India 50% more work next year, despite the backlash in U.S. against job losses. A study conducted by global consulting major Ernst & Young says that while protests against outsourcing to India and offshoring as well, have reached a fever pitch amongst workers unions and politicians with the US presidential elections just round the corner, the flow of work to India has remained constant.
Business process outsourcing is the fastest-growing sector in India's IT industry, with work like filing US tax returns, handling billing questions, telemarketing at call centers, etc. making up the bulk of the outsourced elements. About 100,000 US tax returns were prepared in Mumbai and Bangalore this year. Hence, the decision of outsourcing to India by the U.S.
Jesmine
American companies have decided outsourcing to India 50% more work next year, despite the backlash in U.S. against job losses. A study conducted by global consulting major Ernst & Young says that while protests against outsourcing to India and offshoring as well, have reached a fever pitch amongst workers unions and politicians with the US presidential elections just round the corner, the flow of work to India has remained constant.
Business process outsourcing is the fastest-growing sector in India's IT industry, with work like filing US tax returns, handling billing questions, telemarketing at call centers, etc. making up the bulk of the outsourced elements. About 100,000 US tax returns were prepared in Mumbai and Bangalore this year. Hence, the decision of outsourcing to India by the U.S.
Jesmine
Wednesday, May 19, 2004
Outsourcing To India & China make the US Silver Screen Sizzle
The controversy surrounding outsourcing to India is all set to make the silver screen sizzle. With the advent of September, theatres in U.S. will be narrating a saga on the outsourcing of American jobs to low cost countries like India and China. The initiative has been undertaken by Santa Monica based leading television software producer, Gregg Spotts. His directorial debut takes an empathetic look at the costs of outsourcing to India.
He embarked upon the idea of making a film on this particular topic, when he realized that many of his friends were out of work, due to outsourcing to India. The American news media was talking about a recovery since the 2001 recession, but there is no evidence of that recovery in the experiences of people around in the U.S.
Jesmine
The controversy surrounding outsourcing to India is all set to make the silver screen sizzle. With the advent of September, theatres in U.S. will be narrating a saga on the outsourcing of American jobs to low cost countries like India and China. The initiative has been undertaken by Santa Monica based leading television software producer, Gregg Spotts. His directorial debut takes an empathetic look at the costs of outsourcing to India.
He embarked upon the idea of making a film on this particular topic, when he realized that many of his friends were out of work, due to outsourcing to India. The American news media was talking about a recovery since the 2001 recession, but there is no evidence of that recovery in the experiences of people around in the U.S.
Jesmine
Tuesday, May 11, 2004
Jobs Not Likely To Be Outsourced
Everyone has been hearing about the jobs that are being outsourced to India and other low wage destinations. However, there are some jobs that will never step into the outsourcing world. It is a known fact that after the low end jobs, more and more high tech jobs are getting outsourced. But one job that no one is willing in outsourcing is software architects.
One of the prime things that companies refrain from outsourcing is proprietary knowledge that gives companies the competitive edge. System architects, technology experts and researchers who design and build the company’s most important and complex software are the ones that will never see the face of outsourcing. Sales jobs are also not liable to get offshored. Despite the fact that outsourcing is creating a boom in the BPO industry, all jobs are not likely to be outsourced in the near future.
Jesmine
Everyone has been hearing about the jobs that are being outsourced to India and other low wage destinations. However, there are some jobs that will never step into the outsourcing world. It is a known fact that after the low end jobs, more and more high tech jobs are getting outsourced. But one job that no one is willing in outsourcing is software architects.
One of the prime things that companies refrain from outsourcing is proprietary knowledge that gives companies the competitive edge. System architects, technology experts and researchers who design and build the company’s most important and complex software are the ones that will never see the face of outsourcing. Sales jobs are also not liable to get offshored. Despite the fact that outsourcing is creating a boom in the BPO industry, all jobs are not likely to be outsourced in the near future.
Jesmine
Monday, May 10, 2004
BPOs Giving Scope to Part-timers
At last BPO companies have found the perfect antidote to cope with the high attrition rate that had become a major headache. The solution is by hiring older employees on a part time basis. Nasscom forecasts the ratio of part-timers and middle-aged employees to fresh graduate full timers in the BPO sector is likely to increase.
Companies like GE, Wipro-Spectramind, V- Customer and many others have been doing it for sometime. BPO part timers account for 15-20 percent of the work force. The advantage of employing part timers like retired professionals and housewives, is that they tend to prefer stable jobs and are less prone to ‘job hops’ for a marginal increase in compensation.
What attracts these bunch of BPO part timers, is the shorter schedule, with ample remuneration to pursue their interests. This mutually beneficial arrangement is fast becoming popular for both the BPO and the employee.
Jesmine
At last BPO companies have found the perfect antidote to cope with the high attrition rate that had become a major headache. The solution is by hiring older employees on a part time basis. Nasscom forecasts the ratio of part-timers and middle-aged employees to fresh graduate full timers in the BPO sector is likely to increase.
Companies like GE, Wipro-Spectramind, V- Customer and many others have been doing it for sometime. BPO part timers account for 15-20 percent of the work force. The advantage of employing part timers like retired professionals and housewives, is that they tend to prefer stable jobs and are less prone to ‘job hops’ for a marginal increase in compensation.
What attracts these bunch of BPO part timers, is the shorter schedule, with ample remuneration to pursue their interests. This mutually beneficial arrangement is fast becoming popular for both the BPO and the employee.
Jesmine
Tuesday, May 04, 2004
Is Outsourcing To India Always Cost Effective
Despite the fact that more and more US companies flock to take advantage of India’s ample supply of cheap yet highly trained workers, some of the most motivated US companies have arrived at the conclusion that outsourcing to India is not very cost effective. The problem arises when many entrepreneurs choose outsourcing partners without matching their needs with the partner’s capabilities. In case of India, its high technology workforce is not always as effective as advertised.
According to industry experts, only certain kinds of tasks can be outsourced. Tasks, which require more creativity, are difficult to manage at a distance. Hence, one should weigh the pros and cons of outsourcing, before practically getting into it.
The US based Indian entrepreneurs, who are people with cultural affinity and local connections in India, are the ones who are up from outsourcing. These entrepreneurs do not blame the work ethics of the programmers in India. Outsourcing fails when less disciplined businesses try to farm out projects that are not properly defined.
Jesmine
Despite the fact that more and more US companies flock to take advantage of India’s ample supply of cheap yet highly trained workers, some of the most motivated US companies have arrived at the conclusion that outsourcing to India is not very cost effective. The problem arises when many entrepreneurs choose outsourcing partners without matching their needs with the partner’s capabilities. In case of India, its high technology workforce is not always as effective as advertised.
According to industry experts, only certain kinds of tasks can be outsourced. Tasks, which require more creativity, are difficult to manage at a distance. Hence, one should weigh the pros and cons of outsourcing, before practically getting into it.
The US based Indian entrepreneurs, who are people with cultural affinity and local connections in India, are the ones who are up from outsourcing. These entrepreneurs do not blame the work ethics of the programmers in India. Outsourcing fails when less disciplined businesses try to farm out projects that are not properly defined.
Jesmine
Monday, May 03, 2004
Outsourcing With a Difference
In case you are wondering as to what is so novel about outsourcing, then you have probably missed out a probable new entry in the arena of outsourcing- ‘religion’! Sounding to be unbelievable, a shortage of priests in the United States and the United Kingdom has led to outsourcing of prayers to India. However, religious outsourcing is not absolutely an alien phenomenon. Church officials in the West are of the opinion that prayers for the dead have been outsourced for decades, but the tradition is catching everybody’s attention due to the controversy over corporate outsourcing in the West.
European and American clergy are outsourcing “ mass intentions” i.e. requests for services, such as thanksgiving and memorial masses for the dead, to priests and congregations with time on their hands. The system used by the Roman Catholic Church is the same, as British and American companies outsource their high tech and service work to India, due to the availability of cheap skilled labour.
Jesmine
In case you are wondering as to what is so novel about outsourcing, then you have probably missed out a probable new entry in the arena of outsourcing- ‘religion’! Sounding to be unbelievable, a shortage of priests in the United States and the United Kingdom has led to outsourcing of prayers to India. However, religious outsourcing is not absolutely an alien phenomenon. Church officials in the West are of the opinion that prayers for the dead have been outsourced for decades, but the tradition is catching everybody’s attention due to the controversy over corporate outsourcing in the West.
European and American clergy are outsourcing “ mass intentions” i.e. requests for services, such as thanksgiving and memorial masses for the dead, to priests and congregations with time on their hands. The system used by the Roman Catholic Church is the same, as British and American companies outsource their high tech and service work to India, due to the availability of cheap skilled labour.
Jesmine
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