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| Obama's outsourcing-speak rattles IT stocks |
| BS Reporter / Mumbai Jan 29, 2010, 16:04 IST |
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Tata Consultancy Services fell 0.6% to Rs 735, Infosys shed 0.7% at Rs 2476 and Wipro weakened by 3.8% to Rs 647.
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(Updated at 1134am)
The BSE IT sector has shaved off nearly 3% as the outsourcing bogey came back to haunt the information technology space.
In his State of the Union address, Obama reiterated a campaign pledge to end tax breaks to American companies that outsource jobs overseas. “To encourage ... businesses to stay within our borders, it is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the United States of America,” Obama had said.
India is among the world’s top five outsourcing destinations, along with the Philippines, Ireland, China and Brazil, according to a Tholons report. India earned revenues of $40 billion from IT-BPO export services in 2008, with the US accounting for 50-60% of the Indian IT companies' revenues.
The country's largest IT exporter by sales Tata Consultancy Services has fallen 3.3% at Rs 715, Infosys has shed 2.7% at Rs 2425 and Wipro has weakened by 4.9% at Rs 640.
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