In speaking of a high quality outsourcing work, the Philippines units of US-based companies such as Accenture and IBM maintain its high quality. A move seen to neutralize anti outsourcing tax measures. US President Barack Obama fulfilled a campaign promise to charge a higher taxes on American firms that have an offshore operations. The recommendation was issued by the ICT research think tank XMG Global. The American business process outsourcing companies are required to pay the taxes twice a month for the locality.
The XMG, a technology research firm headquartered in the Philippines and Canada said that Obama’s proposal will further dampen and sqeeze net profitability levels. However, this is not to the point that it will become the tipping point for repatriating work back to the US or putting the brackets to offshore. The XMG chief analyst Lauro Vives and research analyst Arthur Seveilla stated that even though the offshoring has become an issue under the Obama administration, the business trend will not go away and cannot effectively be outlawed. They stated that, the US synopsis of ongoing shortages of highly skilled labor for Information Technology and Business Process Outsourcing is an aging workforce and the unavoidable high cost of operating in the US continue to make the offshoring a viable business strategy.
In the Obama tax plan, the XMG labeled it as standing on dubious grounds and will have only a nominal impact at the end. Those affected unconstructively will be small to medium companies whose offshoring game plan continues to contribute positively to the corporate bottom-line. The debate om the merits of outsourcing are long on address and short on good ideas about how realistically and better address the critical business issue.
If the Obama administration cannot holistically develop other programs aimed at realistically re-skilling the aging American workforce and creating an even-level playing field for global trade, it stressed that rejuvenating domestic employment would be futile. This would be shameful to forget that the US have become the world’s largest economy and solidified its national competitiveness in the back of globalization and offshoring.
Its research indicated the emergence of a new genre of vendors and captives who will ensure operating offshore still remain profitable assuming that the tax plan takes wings and it is vigilantly enforced. From marginalized globalization, the offshoring will continue to become a business strategy as US companies realize that they cannot mortgage near-term tax savings for the potential long-term losses .
Business Process Outsourcing is the trend nowadays. Outsourcing becomes important in every business even if it is small and large businesses. It helps to the profits-earning methods that is possible and add to the popularity. IT has lots of benefits wherein it helps people to find solution in the problems in money. Outsourcing helps the economy and at the same time the industry.
REFERENCE:
http://www.hubportgroup.com/portal/NewsArticles/ITandOutsourcingNews/PhilippineBPOsofUSbasedfirmsmaybetaxedtwi/tabid/159/Default.aspx
http://www.xmg-global.com/mc_articles/varticle.html?id=61&aid=1
http://www.xmg-global.com/mc_articles/varticle.html?id=61&aid=1
http://www.allvoices.com/news/3188126-philippine-units
