No offshore: US ruling to hit Indian IT sector

July 5, 2012

us_it

Mumbai, July 5: In what could be a major setback to the 100 billion dollar Indian IT industry that thrives on offshore revenues, the US on Wednesday proposed two deals with a mandatory 'no-offshore' clause.

It has been learnt that of the two deals, the first is a 320 million dollar deal in the insurance sector, for which Infosys and IBM are likely front-runners.

The second is said to be a 400 million dollar deal in the regulatory space and is likely to be closed within this month. Sources add that a few similar deals could be on the anvil.

Almost all IT vendors including TCS, Wipro, Infosys and HCL Tech have increased their onshore footprint and expanded their employee base in onshore locations, especially the US, and industry veterans say, companies will just have to make their peace with the changes.

KV Kamath, the Non-Executive Chairman of Infosys and Chairman of the ICICI bank, said, "We will need to look at this carefully and understand if it is implementable. If it is implementable then we need to see the consequences of that on business and strategy and position ourselves for that. I think it's best for Indian IT business to be proactive on this to understand its implications."

Meanwhile, the US Senate will soon be looking into a bill backed by the Democratic Party, popularly called the 'Bring Jobs Home Act'.

If passed, the law will extend tax benefits to companies that shift their work back to the US and will end tax incentives to those sending work offshore.

This is not the first time politicians in the US have tried to push through what are seen as protectionist measures, but with the presidential elections slated for later this year, the fear is this may not just remain a rhetoric.


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Agencies
February 18,2020

Mumbai, Feb 18: A group of citizens on Tuesday demanded a thorough inquiry into the death of special CBI judge Brijgopal Harkishan Loya in 2014.

The group has written a letter to Maharashtra Chief Minister Uddhav Thackeray, seeking a time-bound probe into the death of Loya.

Loya, who was hearing the high-profile Sohrabuddin Sheikh fake encounter case of Gujarat, died of a cardiac arrest in Nagpur on December 1, 2014, when he had gone to attend the wedding of a colleague's daughter.

Social activist Ashok Pai, addressing a press conference on behalf of the group, also demanded proper compensation for the judge's family, saying he was on an "official" tour.

Pai said on Tuesday he met NCP president Sharad Pawar, whose party is a key constituent of the Maha Vikas Aghadi (MVA) government in Maharashtra, and raised these demands with him.

Pawar assured to look into the demands, he said at the press conference at the Mumbai Marathi Patrakar Sangh.

"We have handed over a letter to Maharashtra Assembly speaker Nana Patole and dispatched a copy of the letter to Chief Minister Uddhav Thackeray (seeking a probe into Loya's death)," Pai said.

As the matter relates to "mysterious" death of a sitting judge of the CBI, all facts about it must be made public after a detailed and time-bound probe, Pai said.

The Loya death case had reached the Supreme Court.

The Supreme Court had held that Loya had died of "natural causes" and had rejected PILs seeking an SIT probe into the death, questioning their motive.

The SC had held that petitions were moved by political rivals to settle scores which was a serious attempt to scandalise the judiciary and obstruct the course of justice through a "frontal attack" on its independence.

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News Network
March 25,2020

Kolkata, Mar 25: Amid the countrywide lockdown in the wake of coronavirus outbreak, Chief Minister Mamata Banerjee on Wednesday said that all police stations will take responsibility to deliver food at doorsteps under the supervision of District Magistrates and Police Superintendents.
"As we have to ensure that there is no scarcity of food, all Police stations will take responsibility to deliver food at doorsteps and it will be monitored by District Magistrates and Police Superintendents," said Banerjee at a press conference here.
She also said that under the social pension schemes, the pension holders will get their pension of March and April together.
Speaking on local police blocking people involved in essential services, she said, "The Officer-in-charge will have to ensure that the local police know about the rules and exemptions during the lockdown."
"If any police official or an administrative official is found flouting the lockdown norms, then strict action will be taken against them," she added.
The Chief Minister also said, "If somebody needs to help us by giving materials then they need to contact health department official Sanjay Bansal, whose contact number is - 9051022000."
"The government has also launched a State emergency relief fund wherein people can donate. For donation, the account number is 628005501339, IFSC: ICIC0006280 and website: wb.gov.in," she said.
She also said that on March 31 the government will review the situation.
According to a recent update by the Ministry of Health and Family Welfare, a total of 562 positive cases for coronavirus have been confirmed in the country.

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News Network
June 13,2020

New Delhi, June 13: A quarantine notice pasted outside former Prime Minister Manmohan Singh’s 3, Motilal Nehru Place residence has raised speculations among media and political circles.

According to reports, the daughter of a domestic help who works at Singh’s residence has tested positive. She and her family, who live in the servant quarters, have been quarantined.

Singh, who has not been keeping well for some time, is slowly getting active. Congress leaders said the former Prime Minister attended a meeting of the party’s consultative committee on Thursday through video conference.

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