The value of its high-quality outsourcing work will maintain by the Philippines units of US-based companies such as Accenture and IBM. It is a move seen to neutralize anti-outsourcing tax measures, this is announced by the United States. As the President of the United States President Barack Obama fulfilled a campaign promise to charge higher taxes on American firms that have offshore operations, this recommendation was issued ICT research think tank XMG Global.
The American Business Process Outsourcing or BPO, the companies are required to pay taxes twice. XMG, a technology research firm headquarter in the Philippines and Canada said that the Obama proposal will further dampen and squeeze net profitability levels. Become the tipping point for repatriating work back to the US or putting the brakes to offshore. In the issue about the offshore under the Obama Administration, the business trend will not go away and cannot effectively be outlawed.
An aging workforce and the unavailable high cost of operating in the US remain to make the offshoring a viable business strategy, this is the US scenario of ongoing shortages of highly skilled labor for Information Technology and Business Process Outsourcing. At the end, the XMG labeled that the Obama tax plan as standing on dubious grounds will have only a nominal impact.
The analyst firm stated that those affected constructively will be a small to medium companies whose offshoring game plan continues to contribute positively to the corporate bottom-line. Making a progress in improving the US economy has a deleterious effect. The merits of outsourcing debate are long on rhetoric and short on good ideas about how to realistically and better address about the critical business issue. If the Obama administration cannot holistically develop other programs aimed at realistically re-skilling the aging American workforce and creating an even-level playing field for global trade, it would be futile. The offshoring will remain to become a business strategy as US companies realize. It cannot mortgage near-term tax savings for potential long-term losses from marginalized globalization.
The outsourcing is the best technique among others. There are many benefits in outsourcing so that most of the people want to outsource, there are also many reason why people outsourced. The reasons are it is a cost savings, focus on core business, cost restructuring, Improve quality, knowledge, contract, operational expertise, access to talent, capacity management, Catalyst for change, enhance capacity for innovation, reduce time to market, commodification, risk management, venture capital, tax benefit, scalability, creating leisure time and liability.
Companies wants to have a best quality of services so that the clients will be satisfy on the work. Business becomes better because of the help of outsourcing, it will have a good development and performance. Others should know that outsourcing is not a wrong or bad technique because some people know that this is not good. Outsourcing helps to find solution in everything, in a way that when there is a problem in the business one of the solution here is to outsource.
REFERENCE:
http://hubportgroup.com/portal/NewsArticles/ITandOutsourcingNews/PhilippineBPOsofUSbasedfirmsmaybetaxedtwi/tabid/159/Default.aspx
http://www.gmanews.tv/story/160816/Philippine-units-of-US-based-BPOs-may-be-taxed-twice-under-Obama-proposal
http://www.xmg-global.com/mc_articles/varticle.html?id=61&aid=1
http://www.allvoices.com/news/3188126-philippine-units
