Obama stand on outsourcing is politics, says US expert

May 5th, 2009 - 10:14 pm ICT by IANS  

Barack Obama Bangalore, May 5 (IANS) US President Barack Obama’s announcement to end tax sops to those US firms outsourcing jobs to countries like India has come under flak from Phil Harkins, a leading US management expert and chief executive of Linkage Inc, a global firm specialising in leadership development
“What Obama is doing is just politics. It’s the arrogance of the US to think creating jobs overseas will result in job losses back home. Such measures (offering tax sops) will not stop US firms from outsourcing talent where it’s available at a best cost,” Harkins told IANS Tuesday on the margins of a news conference here.

Terming Obama’s observations on outsourcing as political posturing, Harkins said in a globalised world, companies look for sharing resources, be they human or investments, to remain competitive and sustain growth even in a downturn.

“I don’t think American firms will stop outsourcing jobs overseas for availing tax incentives at home in a global economy. By outsourcing jobs where they are beneficial and cost-effective, they actually protect jobs back home and stay competitive,” he said.

Clarifying that Obama’s proposal had to do more with the international tax policy reform than creating jobs in the US, Harkins said those US firms with global operations outsource jobs where they make business sense.

“By outsourcing manufacturing of goods to countries like China, the US economy benefitted a lot. Similarly, by outsourcing services or back-office operations to overseas firms located in countries like India, US firms benefit a lot more,” Harkins said at the launch of his firm’s India operations here.

The Massachusetts-based Linkage offers corporate clients the world over with integrated solutions, including strategic consulting services, customised leadership development and training experiences, tailored assessment services, executive coaching and benchmark research.

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