Impact of US Policies on India As Offshore Outsourcing Destination

The US suffers an unemployment rate of 9.9% whichpaper records into electronic and digital formats?
has triggered a need for several amendments in USHence, Indians grew optimistic and had already
policies towards Outsourcing and the companies thatsecured contracts with major health care providers to
outsource jobs to India. Among those who outsourceprovide services. The Health care Bill is expected to
vastly are the giant US conglomerate GE (Generalbring employment to Indians for the next 10 years.
Electric Company) and IBM (International BusinessOn the other hand, 'American Jobs and Closing Tax
Machines).Loopholes Act' was passed in the House of
Recently, the health care bill passed in the US led to 35Representatives recently which was supposed to
million Americans being given fresh health insuranceexempt companies from certain taxes if they
cover. As the Bill was passed on March 23 and wasgenerate more number of employment within the US.
made a law on March 30, Companies in India hadCitigroup, IBM and GE have been the major gainers
turned hugely optimistic over the imminent revenuefrom their Offshore Outsourcing activities creating
inflow that followed. Processes like enrollment,employment opportunities in India.
insurance claims, transactions and customer servicesHowever, predictions suggest that this is not going to
that followed were to provide employmentaffect outsourcing to India as the bill was aimed at
opportunities to India.increasing job opportunities within the US and was not
This was because Health care providers were forcedintended to curb the profits made by these companies
to operate at lesser cost in providing healthcarefrom outsourcing their jobs to India.
services to Americans. Who will convert all those