June 24, 2012
Scrapping outsourcing will hamper all major economies badly, not just those who provide cheap human resources. The money India begets from outsourcing, a lion’s share goes into the elites, rich men and political powers. How? There are no small powers in outsourcing. These are mid-sized or larger corporates. So they benefit and who else benefits? >> The Governments. The Governments tax heavily, more than 1/3rd they take as tax. eg If you get 100$ profit from outsourcing and you are a company in India, as long as you pay your tax honestly, 33$ is taken by Indian Government. This is what I called a 2 pi/3 syndrome of the Indian Government. How then it spends this money? The Governments eg Indian Government spends hardly 4 or 5 $ towards gross development of the country and rest is spent towards keeping the politicians rich. eg the prime minister and president and bureauocrats and so on [the system in general but primarily the ones who are sitting at the top of the ecology]. These top sitters go around the world with luxury and pomp and spend all the tax they get from the nation [not just from outsourcing] If such a machinery would not run in India, America or EU would not benefit at all from any trade that runs with these nations in addition the Government can always hoodwink the domestic and international players and lesser powerful foreign governments as well. If the power of the outsourcing regimes is hampered majorly it will only adversely affect all major Governmental and therefore the respective national economies irrespective of how much is enjoyed by the collossal Governmental machinery and how much is enjoyed by the nation-absolute. The nation-relative amyway is a subjective perception hence who cares depends on how he sees his benefits.