The new tax proposals made by the President of the United States, Barack Obama, imposing curbs on outsourcing has sent shock waves in the thriving II, IT enabled services and Business Process Outsourcing units in the city.
A hub for the ITeS/BPO units, several IT majors including Wipro, Nipuna of Satyam and Dell have their presence here in addition to the smaller units which employ several thousands of employees.
The industry is yet to get clarity on the proposals including slashing of incentives for companies with overseas operations made by the US President. The proposals appeared to be aimed at addressing the tax rate differentials for companies with global operations and this would impact the US headquartered companies with overseas operations. The proposed legislation was aimed at creating barriers for global trade and it appears counter intuitive besides actually hurting the US industry, the Hyderabad Software Exporters Association has said.
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