Outsourcing trouble: India Inc reacts

Don't move jobs to India: Obama

In a message that may not be music to Indian outsourcing firms, the US President, Barack Obama, has served notice that he would end the tax breaks for corporations that ship jobs abroad.

Giving his first speech to a joint session of the US Congress on February 24, Obama said: "We will restore a sense of fairness and balance to our tax code by finally ending the tax breaks for corporations that ship our jobs overseas."

If Obama follows through with the announcement in the budget, whose outline he would present on February 26, the move may hurt India's BPO sector as without the tax breaks, US companies may find it less attractive to outsource jobs to India.

Text: Agencies

Image: AFP

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