Say no to Bangalore, yes to Buffalo: Obama [ Is it going to affect Indian Market ? ]

May 6, 2009

05obamaSay no to Bangalore, yes to Buffalo: Obama (Is it going to hit Indian Market ?

Say no to Bangalore and yes to Buffalo,seems to be the latest mantra of United States President Barack Obama as he struggles to bring the ailing American economy back on track.

Meeting one of his major election promises, Obama on Monday the announced end of years of tax incentives to those US companies which create jobs overseas in places like Bangalore.

Instead, the incentives would now go to those creating jobs inside the US, in places like the Buffalo city — bordering Canada in upstate New York.

“We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits,” Obama said at White House announcing the international tax policy reform.

“We will use the savings to give tax cuts to companies that are investing in research and development here at home so that we can jump start job creation, foster innovation, and enhance America’s competitiveness,” Obama said.

The new tax laws are expected to majorly hit countries like India, China and the Philippines, where US companies have been outsourcing their work.

Hitting hard at the current taxation system, to which he had been very critical since his election days and as a Senator, Obama said: “It’s a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York.”

Reiterating his campaign rhetoric, the US President said: “The way we make our businesses competitive is not to reward American companies operating overseas with a roughly 2 per cent tax rate on foreign profits; a rate that costs taxpayers tens of billions of dollars a year.”

Source: Rediff

Indian contract manufacturing market to touch $2.46 bn

September 25, 2008

Indian contract manufacturing market is expected to touch $2.46 billion by 2010 with a CAGR of 41.7 per cent from $869 million in 2007, a report said.

“Indian companies, through their high quality-low cost production models, have bagged some impressive deals in the contract manufacturing space. These deals validate India’s potential to achieve a larger share of the global manufacturing outsourcing market,” consulting firm KPMG said in its latest pharma report.

Winning outsourcing deals signify Indian companies have been able to win the trust and confidence of multinational companies, it said.

Indian companies Nicholas Piramal, Cadila, Shasun, Dishman, Jubilant, Matrix, Strides, Ipca and Divi’s are into contract manufacturing business.

In the future, Indian players would move up the value-chain in the contract business, KPMG said.

At present Indian companies are involved in the manufacture of active pharmaceutical ingredients and intermediates, solid and liquid dosage forms and simple vaccines.

Source: Business Standard

Indian IT-BPO industry grows 28 p.c.: Nasscom

July 10, 2008

The Indian IT-BPO industry (including domestic market) recorded an overall growth of 28 per cent (currency adjusted), clocking revenues of $52 billion in FY07-08, up from $39.6 billion in FY06-07.

According to an annual Nasscom survey on the performance of the Indian software and services sector (excluding hardware), the domestic segment grew by 26 per cent (in INR) to register revenues of $11.6 billion in FY07-08.

Within the export segment, IT services exports have grown by 28 per cent (in USD) to clock revenues of $23.1 billion; while BPO exports are up by 30 per cent (in USD) registering revenues of $10.9 billion.

Engineering services and products exports clocked revenues of $6.4 billion, growing at 29 per cent (in USD) in FY 07 -08.

The survey projected that the overall software and services revenues will grow by 21-24 per cent (currency adjusted) to touch $50 billion in FY08-09.

Som Mittal, president, Nasscom, said: “The Indian IT-BPO industry’s resilience is reflected in its FY07-08 performance, with a 28.2% overall growth rate and next year’s projected growth between 21-24 percent. Given that we are well on our way to achieve the target of USD 60 billion in exports by FY09-10, the industry is now focusing on improving productivity, efficiency, as well as opening up new markets and services”.

He further added: “The next decade offers opportunities and challenges which will require new business models and the industry dynamics will also see significant changes leading to a many new industry drivers and enablers, and we will need to prepare ourselves for these. NASSCOM is developing a long term vision for 2020, to chart out the roadmap for all stakeholders and help them tap into this opportunity.”

Source: CIOL