May 31, 2009

Battle: Bangalore Vs Buffalo


This blog title is the most hyped phrase in Indian IT companies as of this month. I really like the style of the first black American president, Barack Obama. He is entirely different from his precursor, George bush. Inferring from what Mr. Obama is doing, it seems the precursor thought very little about the economy of Uncle Sam, concentrating more on toppling the Saddam Hussein statue in Firdos Square.
This is what the president quoted that blown a thunder storm among Indian IT giants.
“Say no to Bangalore and yes to Buffalo”.
Before discussing this, one should know the actual story happening out there in the U.S. If you don’t know, this is what happening in the U.S.
U.S software vendors are more interested in recruiting Indian software engineers. When compared to an American, an Indian IT guy will do the same task even more efficiently with just 20% of his salary, and surprisingly with extra effort too. The Indian equivalent of this 20% salary is convincing enough for us, which Is one of the reason why people don’t care much about getting paid less than an American. Now Uncle Sam gives Tax exemptions for those companies to help grow his U.S economy.
See how smart are those IT companies…
“for increasing their revenue, they recruit Indians & pay less salary. As a consequences, Americans go jobless, but the IT companies gain profit, Indians take most of the salary back home spending very less out there”.

The Crux

Now everyone is smart here. The Indian software engineer & the U.S IT company. Only fool is Uncle Sam because even after giving benefits to U.S software vendors, his country men go jobless. Someone else is getting bread & butter (or idly & chutney :o).
Obama is even too smart & identified this. He visualized a striking jobless situation in his country, if this proceeds. This ultimately leads to the downturn of the country.
Now Coming back to Bangalore – Buffalo story, Obama announced the end of years of tax incentives to those US companies which create jobs overseas in places like Bangalore.
Instead, the incentives would now go to those creating jobs inside the US, in places like the Buffalo city -- bordering Canada in upstate New York.
"We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits. We will use the savings to give tax cuts to companies that are investing in research and development here at home so that we can jump start job creation, foster innovation, and enhance America's competitiveness."
Obama said at White House announcing the international tax policy reform.

Aftermath

Now this a brave, beneficial decision by obama & i salute his efforts & patriotism. Surely. But being an indian software engineer whose profession also depends on the U.S Markets, it's a not a very good news for me(us) :(
What do you think ?

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