Skyline Global Outsourcing Update

Former New Orleans Mayor Ray Nagin’s technology outsourcing cost the city an unnecessary $1 million more than if the work had been done in-house, according to a new report from Ed Quatrevaux, the city's inspector general. The report, issued Aug. 30th, found the city’s contract with Telecommunications Development Corp. wasted more than $750,000 in an eight-month period from salaries alone. TDC salaries would have cost the city $960,000 more annually than having city employees do those tasks, Quatrevaux said in the report.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

India's flagship outsourcing industry reacted angrily Saturday to a new US law tightening security at the Mexico border with measures paid for by steep hikes in American work visa fees. The 600-million-dollar legislation, signed into law Friday by US President Barack Obama, will nearly double visa fees for some Indian information technology workers entering the United States. The US is giving a very strong signal foreigners are not welcome, said Som Mittal, president of the National Association of Software and Services Companies (NASSCOM), which represents India's leading software exporters. The row comes as India readies to host Obama later this year and as anti-outsourcing anger in the United States has been stoked by high unemployment. The law, passed in the run-up to November US polls, earmarks funds from the visa fee hike to pay for the US government's plans to boost security along its border with Mexico to crack down on illegal immigration and drug smuggling.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

President Barack Obama Friday signed a bill that tightens security at the Mexico border, hoping to address the hot issue of illegal immigration in the run-up to November congressional elections. The 600-million-dollar legislation hikes visa fees for some IT workers entering the United States, and has had been slammed by Indian industry. The fee increases pay for 1,000 new US Border Patrol agents to form a "strike force" for quick deployment, 250 new Immigration and Customs Enforcement agents as well as 250 new Customs and Border Protection officers at ports of entry. It also boosts communications among law-enforcement officials. The new law nearly doubles fees on visas for skilled workers brought in by companies whose staffs are more than 50 percent foreign, a move that largely affects India's IT and outsourcing industries.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

In a move that could upset the Indian outsourcing industry's robust growth so far, China has announced operating tax exemption for its outsourcing businesses till 2013. The exemption, which will benefit Chinese companies in 21 cities, is in line with China's aggressive campaign to emerge as the top outsourcing destination in Asia. India's IT related outsourcing services — a sunshine industry — can no longer take comfort in the logic of economic competitiveness. Apart from a rising China, the sector is also looking at rising protectionism in its primary client destination, the US.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

Outsourcing is to a company's viability as high unemployment is to a job-based economy. At least it can be, according to a new study co-authored by University of Utah David Eccles School of Business researchers that is an explicit heads-up to companies bent on cutting corners — and often jobs — in a desperate attempt to cut costs. The strategy of bolstering a firm's bottom line through outsourcing manufacturing, quality control and even customer service holds as much long-term risk as it does short-term financial or market position gain, according to Lyda Bigelow, an assistant professor of management whose ongoing research focuses on strategies businesses use to expand and how they handle, or often mishandle, change. Despite the hazards of losing quality control through outsourcing, which has a long history of being an Achilles' heel at many companies, outsourcing is booming.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).

In the latest battle over outsourcing, the Indian government has fired back at the U.S. Last week, U.S. senators unanimously passed a proposal to nearly double the fees on work visas for Indian IT companies sending workers to the U.S. Indian Trade Minister Anand Sharma has called the move “highly discriminatory” in a letter to his counterpart, U.S. Trade Representative Ron Kirk. As Bloomberg News reports, Sharma writes that “it is inexplicable to our companies to bear the cost of such a highly discriminatory law.” Sharma must know he’s not going to get a sympathetic ear from Kirk or others in the Obama Administration. Even if they were interested in helping fight this proposal (which they’re probably not), they’re not going to go up against a Senate where there’s rare consensus about the need to sock it to Indian outsourcing companies by charging them more for H-1B or L-1 visas.

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The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).