shrya uppal (ec)

8/7/2019 shrya uppal (ec)

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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..


6/24

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.


11/24

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


16/24

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???...


19/24

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


20/24

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

shrya uppal (ec)

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