From some time, outsourcing has become the most viable solution for SMEs for their growth in a cost-effective way. For this reason, outsourcing is regarded as one of the major factors involved in the fall of the US economy. Recently, the US President Barak Obama stepped up a campaign against outsourcing and encouraged in-sourcing. Apparently, this campaign seems to hurt the BPO Services companies outside the US.
A business that is outsourcing its business activities will not get the tax deduction as said by the President, “If you're a business that wants to outsource jobs, you shouldn't get a tax deduction for doing it." This tax deduction and overall campaign is aimed at bringing financial betterment in the country. The people outsourcing their business activities outside the US will now be investing in their own country and this will bring them tax deductions and other benefits. He said that multinationals will be paying a basic tax amount and each and every penny of these taxes will go to lowering the taxes of companies working and hiring in the US.
On the basis of points made in this presidential address, it seems as if it will put a cut to the BPO services outside the US. However, a deep analysis of the current BPO Services will help us make a better perspective in this regard. Outsourcing is not an old industry when compared to others yet it has got firm footing in time it got and today it is an essential need for several different SMEs across the world. Even changing this scenario requires some time. The BPO services have got firm basis to streamline businesses and if a country tries to depart itself from the process, the outcome might be a minor cut. The tax deduction bait will soon prove a far cry.
A business that is outsourcing its business activities will not get the tax deduction as said by the President, “If you're a business that wants to outsource jobs, you shouldn't get a tax deduction for doing it." This tax deduction and overall campaign is aimed at bringing financial betterment in the country. The people outsourcing their business activities outside the US will now be investing in their own country and this will bring them tax deductions and other benefits. He said that multinationals will be paying a basic tax amount and each and every penny of these taxes will go to lowering the taxes of companies working and hiring in the US.
On the basis of points made in this presidential address, it seems as if it will put a cut to the BPO services outside the US. However, a deep analysis of the current BPO Services will help us make a better perspective in this regard. Outsourcing is not an old industry when compared to others yet it has got firm footing in time it got and today it is an essential need for several different SMEs across the world. Even changing this scenario requires some time. The BPO services have got firm basis to streamline businesses and if a country tries to depart itself from the process, the outcome might be a minor cut. The tax deduction bait will soon prove a far cry.
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