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8/7/2019 shrya uppal (ec)
1/24
Declaration of
Reduction in outsourcingBy Barack Hussein Obama
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WHAT OBAMA WANTS???
END OFTAX BREAKS
COMPANIES TOCREATEJOBS IN AMERICA
COMPANIES NOTTO GIVEAWAY THEIRTECHNOLOGY
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WHAT IS OUTSOURCING?WHAT IS OUTSOURCING?
Most commonform
of outsourcing
Businessprocess
outsourcing
Information
technology
outsourcing
Outsourcing is contracting to anothercompany or person to do a particular
function.
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OBAMA STOPS TAX BREAKSOBAMA STOPS TAX BREAKS
OBAMAUNDERLINED HISDETERMINATIONTO END TAX
INCENTIVES THATCREATE JOBOVERSEAS.
TAX CODE HASACTUALLY GIVENBILLIONS OFDOLLARS IN TAX
BREAKS THATENCOURAGECOMPANIES TOCREATE PROFITSIN OTHERCOUNTRIES..
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Homeland securityVS
Open borders
Unequaldistribution
Of costsAnd benefits
Ruin ofAmericanworkers
competitiveness
OBAMAS CONCERNS
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INDIA IS FASTBECOMING A
MAJOROUTSOURCINGHUB TO THE
WORLD.
THESEOUTSOURCING
JOBS AREMAINLY SEENIN FINANCIAL
INSURANCE,SOFTWARE&BANKINGSECTORS.
THE JOBS ININDIA ARE
CREATED DUETO
OUTSOURCINGARE MAINLY
OFFICE &RESEARCH&DEVELOPMENT
.
IT INFRASTRUCTURE,TELECOMMUNICATION FACLITIES
LOWER LABOURCOST,ENGLISHSPEAKING PEOLE
GOVERNMENTAL INCENTIVES,SUPPORT TO PRIVATE ENTERPRISES
OUTSOURCING TO INDIA
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The key questionconfronting theeconomy is TheBackwash Effect
Of AmericanFinancial Crisis.
Central Banks inseveral countries,including INDIA
have movedquickly to
improve liquidity.
Public sector aresaid to be raisingmoney at 11.5%,So that lending
rates have tohead for 16%.
When inflation isrunning at 12%.
Credit hassuddenly becomemore expensivethan few months
ago.
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REDUCTIONS BY OBAMA HURTINGREDUCTIONS BY OBAMA HURTING
INDIAINDIA
$50-BILLION BUSINESS
60%OF SOFTWARE REVENUE
Provides employment to
Millions of people
It sector completely
depends upon outsourcing
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INFOSYSTECH.
WIPRO
IBM
MAJOR COMPANIES AFFECTED
BUSINESS OF$1BILLION-$5 BILLION
OUTSOURCING BUSINESSOF OVER $5BILLION
BSINESSWORTH $
1-5BILLION
AND MANY MORE.
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OBAMAS VISIT TO INDIA
"As President, I have a
responsibilityto support jobs and opportunity forthe American people, and I believethe US-India economic relationshipcan and should be a 'win-winrelationship for both of ourcountries,"
OBAMA SAID:
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SECTORS TO BENEFIT FROM OBAMAS VISIT
All stocks related to retail business like Pantaloon,Trent, Shoppers Stop etc can do good in
stock market price wise.
Defence is another sector which United States must beeyeing at as a good opportunity since India also needs
to improve its defenses
health care,Agriculture
sector could alsosee interestand benefit.
Financial sector,Indo-Usnucleardeal
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OBAMA NOT SO HARSH
AGAINST OUTSOURCING
:
HE SAID DURING HIS VISIT:US has realised that its economy
"cannot recover and grow" withoutgrowth in other places ."India has world-classcompanies, many of which are creating andsupporting tens of thousands of jobs in theUnited States, and my administration wishesto encourage more such investment.
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Experts views:
Companies will do whateverit takes to remain
Competitive,offshoring isimportant
The economic logic ofsending jobs to low costcentre is so compellingthat comp. will keepdoing it
There is no guarantee thatRecent measures likeHiking Visa fees will
achievedesired results
Tax breaks will notStop outsourcing
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WIPROTECHNOLOGIES HAS
JOINED THEIT INDUSTRY
INCRITICISINGUS TO BAN
OUTSOURCING
UNION
COMMERCE &INDUSTRYMINISTERANAND
SHARMA SAIDA BAN ON
OUTSOURCING JOBS
WOULDNTHELP U.S.
WIPRO SLAMS US MOVE TO BAN OUTSOURCING
CASE
STUD
Y
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Case Study: Wipro
20092009 20102010
USUS 5858--6363 --44
MEXICOMEXICO 33--44 33--44
INDIAINDIA 2727--3030 11
LATINLATIN
AMERICAAMERICA33--44 1.51.5
OTHERSOTHERS 44--88 1.51.5
US BASED IT DEMANDS:
NOTE:THE NUMBERS ARE IN %
TELECOM OEMTELECOM OEM 1717
EMBEDEDEMBEDED 1515
TELECOM SERVICESTELECOM SERVICES 44
FINANCEFINANCE 1717
RETAILRETAIL 1212
ENERGYENERGY 1414
MANUFACTURINGMANUFACTURING 1313
OTHERSOTHERS 88
WIPROS REVENUES
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Expanded networksExpanded networks
Stronger clustersStronger clusters
Economic growthEconomic growth
Community renewalCommunity renewal
Higher productivityHigher productivity
More expertiseMore expertise
Price pressuresPrice pressures
Growing competitionGrowing competition
Time consumingTime consuming
Increased cashIncreased cashoutflowoutflow
Moral problemsMoral problems
Is obama right???...
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EVALUATION
we need not to worry asthese tax breaks havenothing to do withOutsourcing
Mukesh Sharma,Founder and ceo of infotech
THIS LAW WILL MAKE USCOMPANIES LESS
COMPETITIVE WHICH WILLHURT U.S. ECONMY
Anil Kaul,
Founder and CEO,Absolute Data Research and Analytics
Obamas policies couldhelp the govt to reduceits Unemployment costs
Rodney nelsestuen,Senior research director
inward looking andisolatory would end
up hurting economiesAnand sharma,Commerce minister
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CANBOTHNATIONSBENEFIT?
OBAMA SAID HE WANTS TOPRY OPENINDIANRESTRICTIONS ON
FOREIGN INVESTMENTS.
So much innovation and ourideas still come from the U.S.
hope its just political rhetoric
The U.S. has beenlecturing India on
opening its markets foryears, and now theywant to protect their
markets
The U.S. is still theLargest economy
in the world.If America does well,the world does well.
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LETS HOPE.
Even thougha lot of discussions are
on about this news, Indiais still hopeful that it willnot be affected in anegative way and is
looking forward tosome positive changes.
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Made by:Rachita kochharShreya uppal
Savi guptaShruti gupta
(XI-H)
Under the able guidance of:
MRS. ANUJA BANSAL