Domestic Outsourcing: The New Wave Is Here
In his state of the union address, President Barrack Obama restated the official position of the United States regarding offshoring. In his speech about this issue, the President stated “It is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the United States of America.” Obama further decried tax codes “…that say you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York.” The indications were pretty clear — why face unnecessary risks by investing in offshoring when the state is offering so much more to industries who are involved in domestic outsourcing.
Domestic outsourcing can vastly benefit US corporations and the economy by ensuring that highly skilled technical jobs remain within the country. With tax benefits being offered, the aim is to look inwards while searching for talent and yet lower the cost of operations. The idea is to refrain from looking at this kind of talent and infrastructure in the already expensive areas of the east coast or the west coast, but rather expand to other American states which can offer comparatively better real estate prices. Additionally the talent from these places will come cheaper than that from the east or west coasts.
Perhaps you may wonder why we are excited about domestic outsourcing. Well lets consider a few alarming statistics, like the national unemployment rate, which currently stands at 9.6% (Sept-Oct 2010). This has been the highest unemployment rates in over 25 years for the country. So despite having the best creative and technical experts, why are our talent and resources being wasted? All because of technical work that gets outsourced to countries like India and China for the last many years. Cost became the key reason why outsourcing to such countries seemed like the panacea to curb rising costs for all enterprises. And domestic outsourcing can definitely help raise jobs for our local talent across the country and also ensure costs are minimized whilst offering enterprises complete control over their projects as well.
Outsourcing was considered a huge challenge for our country, but it is a challenge that domestic IT enterprises should deal with comprehensively by considering all aspects of this now socio-economic issue. America can grasp the opportunity that domestic outsourcing offers. It is time for all enterprises across the country to welcome the new wave of domestic outsourcing with open arms!
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