What impact will the change in the political climate following the election of Barack Obama and the onset of global recession have on outsourcing to lower-cost economies like India and China?
The CEO of Genpact Ltd, an outsourcing company spun off from General Electric Co., said recently the industry’s growth rate will drop by half in the recession as customers curb spending on technology and software services. Having said that, his growth estimate was in the “middle teens,” down from annual rates of about 30 percent in recent years so still pretty impressive...
http://www.bloomberg.com/apps/news?pid=20601091&sid=a.AHbWT8jQ7o&refer=india
The great unknown is whether and how Mr. Obama will deliver on his promise made during the campaign that “unlike John McCain, I will stop giving tax breaks to companies who shift jobs overseas and will start giving it to companies who create good jobs in America”.... Is this for real? Many of the 17 members of Mr. Obama’s Transition Economic Advistory Board have come from big companies that have a long history of moving work overseas.
