Saturday, November 08, 2008

Will Obama take away my job?

I have been an Obama supporter from Day 1. He has the poise, the charisma and the grace to be a president and turn America around. May be not necessarily in a single term but I forecast that Obama is going to be the president for many more terms to come.

Anyways, the question for this blog is will Obama take my job away? I am an IT worker from India who works on projects of US MNCs. Talk to anyone in India and they will tell you how much of a hype the media has created on Obama's words that he will bring back jobs to America.

My analysis tells me mny things
1) Obama has not said anything like he is going to ban outsourcing. What Obama has said that he is going to stop "subsidizing" outsourcing. They claim that right now the govt subsidizes anythign that has bbeen outsourced and therefor ethey are going to get rid of those "tax-breaks" . So outsourcing will be taxed like any other American labour is taxed. If such incentives do exist and are repealed, then there may be some slowdown in outsourcing so instead of 30% growth, there will be 15% growth.
2) Obama has also mentioned that he is not against globalization or putting up walls around america and that it is very difficult to bring back the jobs that have already been outsourced. So he says that the governemnt has to create more jobs like buil dmore schools, improve the infrastructure and build bridges etc. More students need to take up maths, science etc.
3) In my opinion, big companies will see more value proposition in outsourcing and therefore will go ahead with it, inspite of the tax breaks. However, small comapnies like RiteAid will need to evalute a lot of cost/saving and growth forecats before they think outscouring will be profitable.

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