How Will Obamas Presidency Affect Outsourcing to India?
trickle-down economics – let the companies reap the cost advantages of off-shoring such that their success will provide a positive effect for the broader business population. No doubt both parties have the ability to influence and affect offshore contracts through their House and Senate voting power and clearly Obama himself has the almighty power of the Presidential veto. However, real cost savings are a powerful incentive and may prove to be a formidable match as US companies will give relentless pursuit to any methods that yield lower costs and a better bottom line. Certainly Obama can offer tax incentives but such a strategy may not prove to be sufficient motivation given the latest economic downturn. Just as water seeks its own level, businesses will seek out the most cost effective means to deliver their product to market. Cooperating foreign and domestic enterprises may find that, in the long run, tax incentives may only be temporary whereas good trade and commerce can withstand
