The easy way around this is to tax US companies hard for head count in India. Like 100k per employee in India that is directly working on services for US based business. So a developer working on a product that will be used in the US is taxed.
India is a protectionist state. It doesn't deserve any slack. Tax the shit out of American companies that move work there.
alephnerd•4mo ago
And then India will enforce it's Digital Services Act, as will the European Union, as will other countries with significant services exports.
On top of that, the foreign subsidiaries of companies are that - subsidiaries. They can be converted or spun out into autonomous or entirely independent organizations that own IP and decisions, thus bypassing the "strategy" you mentioned. This is why the India subsidiaries of most conglomerates like Hyundai, LG, Suzuki, Siemens, and others have been IPOing in the India for the past few years.
Finally, I'm in cybersecurity. Our entire pipeline is in Israel, the CEE, and India because there is no hiring pipeline aside from a smattering of veterans from cybersecurity MOSes.
We wouldn't have outsourced if we had the right talent pipeline in the US, but universities and state and local governments failed us, while other countries abroad worked to attract FDI, ensured industries had a say in designing curriculum, or made sure to provide tax credits.
It's the same reason Hollywood shifted to London and automotive manufacting to Ontario and Mexico.
There's a reason Wiz was founded in Israel and not America.
JohnFen•4mo ago
Sounds like a good way to get those companies to move outside the US entirely.
sleepyguy•4mo ago
Then they don't need to do business in the US. Lets see how it works out for them.
churchill•4mo ago
How are you going to enforce that? I mean this sincerely, from the bottom of my heart.
Ban SWIFT transactions to India? They'll just start hiring in Eastern Europe, the Philippines, etc. Not to mention explosive lawsuits that'll ultimately find that the government doesn't have those powers.
I can understand and sympathize with you feeling sad about jobs being outsourced but, this is technological evolution. America has a tiny slice of humanity's population and if the Bell Curve is accurate, it therefore has a tiny slice of the world's supply of smart people. Or, maybe just driven hard workers, since not every H1B founds a Google.
If you don't let them move to America, then fine, your homegrown companies will export jobs to them. The only way to prevent this is to levy blanket tariffs on all countries to force them to onshore. But, then, they'll retaliate, hurting America's export industries and the economy. Making America a less attractive place for the businesses you're trying to hold back. They'll consequently move out.
It's the same thing with tariffs. If
corimaith•4mo ago
Businesses set up offices to claim the local market, not local talent. The matter of fact is that the average Indian or Chinese or Eastern European is alot less lucrative than the average American consumer. And in a world of mercantilism, you're not going to be exporting much to the US market.
JohnFen•4mo ago
The world is a big market. The days when the US is, basically, a "mandatory" market to address are behind us.
corimaith•4mo ago
No actually, the majority of large economies are all export based economies, it's pretty much the US and a handful of much smaller economies like the UK on the other side of the balance sheet.
It's arithmetically impossible for everyone to be exporter, and those large enough to absorb those surpluses like China, India and the EU are not going to be willing to run aggregate deficits, certainly not short-medium term without painful adjustments.
As for the "global south", their markets combined don't reach close to the size of the US market.
JohnFen•4mo ago
There are quite a few companies that manage to do OK without selling into the US. BYD is the currently hot example.
sleepyguy•4mo ago
India is a protectionist state. It doesn't deserve any slack. Tax the shit out of American companies that move work there.
alephnerd•4mo ago
On top of that, the foreign subsidiaries of companies are that - subsidiaries. They can be converted or spun out into autonomous or entirely independent organizations that own IP and decisions, thus bypassing the "strategy" you mentioned. This is why the India subsidiaries of most conglomerates like Hyundai, LG, Suzuki, Siemens, and others have been IPOing in the India for the past few years.
Finally, I'm in cybersecurity. Our entire pipeline is in Israel, the CEE, and India because there is no hiring pipeline aside from a smattering of veterans from cybersecurity MOSes.
We wouldn't have outsourced if we had the right talent pipeline in the US, but universities and state and local governments failed us, while other countries abroad worked to attract FDI, ensured industries had a say in designing curriculum, or made sure to provide tax credits.
It's the same reason Hollywood shifted to London and automotive manufacting to Ontario and Mexico.
There's a reason Wiz was founded in Israel and not America.
JohnFen•4mo ago
sleepyguy•4mo ago
churchill•4mo ago
Ban SWIFT transactions to India? They'll just start hiring in Eastern Europe, the Philippines, etc. Not to mention explosive lawsuits that'll ultimately find that the government doesn't have those powers.
I can understand and sympathize with you feeling sad about jobs being outsourced but, this is technological evolution. America has a tiny slice of humanity's population and if the Bell Curve is accurate, it therefore has a tiny slice of the world's supply of smart people. Or, maybe just driven hard workers, since not every H1B founds a Google.
If you don't let them move to America, then fine, your homegrown companies will export jobs to them. The only way to prevent this is to levy blanket tariffs on all countries to force them to onshore. But, then, they'll retaliate, hurting America's export industries and the economy. Making America a less attractive place for the businesses you're trying to hold back. They'll consequently move out.
It's the same thing with tariffs. If
corimaith•4mo ago
JohnFen•4mo ago
corimaith•4mo ago
It's arithmetically impossible for everyone to be exporter, and those large enough to absorb those surpluses like China, India and the EU are not going to be willing to run aggregate deficits, certainly not short-medium term without painful adjustments.
As for the "global south", their markets combined don't reach close to the size of the US market.
JohnFen•4mo ago
corimaith•4mo ago