[pbradish]

good thread but could get nasty in a hurry . Politics on an entrepreneur forum?

[orange655321]

Actually...just read an interesting article on reverse "off-shoring" where Indian firms are hire'n people in the US like Tata, Infosys, Wipro after some short training in india. this is similar to when Japan started manufacturing more of their cars to meet the US demand. Also, not all of the jobs that go over seas are outsourced as well. india and china represent huge consumer markets so US based firms need to add more labor in these home markets to get a foothold and add domestic people to sell to domestic consumers in these countries and develop products that they want. outsourcing isnt just cost cutting to a cheap labor market...and if that is the intent it cannot continue. IT workers in india are already getting 15 to 25% raises each year because of the tight skilled labor market, despite a large population. plus the inian rupee has really climbed against the dollar. capitalism is an interesting thing....you jump to a country to do outsourcing, it ups the demand for labor, which ups the prices for the salaries and the local currency, which decreases the insentive to outsource.

besides....how many american companies are actually american and paying US taxes? I was at Accenture...and thought they were a US firm...only to find out that when they went public they were actually in the Bahamas for tax purposes. i find when a company outsources their tax liability it is much worse for our country then adding cheap labor in markets out side.