The Old Joel on Software Forum: Part 3 (of 5) - Senate ban on federal IT offshoring?

Senate ban on federal IT offshoring?

Has anyone read this Financial Times article? http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1073281284712&p=1012571727088

Apparently the Senate passed a bill banning the offshoring of federal IT projects. While federal projects account for only 2% of offshoring, it still makes a big (and surprising) statement. India is protesting this bill, and since we just signed a technology-based trade agreement with India, I have my doubts that Bush will sign it.

Also of note, India just passed a tax law that enables them to collect taxes on the global sales of products for companies whose core products are developed in part in India.

I haven't seen any other tech news references to these issues, so I'd be curious if anyone can elucidate on these 2 topics.

Nick
Monday, January 26, 2004

Hmm...I gotta wonder, can American companies do IT work for India's gubmint?

Do As I Say, Not As I Do
Monday, January 26, 2004

A better question is, "Should they?"

John Simmons
Monday, January 26, 2004

Congress passes anti-free trade bill! Film at 11.

Daryl Oidy
Monday, January 26, 2004

"Hmm...I gotta wonder, can American companies do IT work for India's gubmint?"

From a pratical standpoint, given the relative costs and convenience, we may never find out.

Zahid
Monday, January 26, 2004

US companies can do work for Indian Govt: http://in.rediff.com/money/2004/jan/24bpo3.htm

Monday, January 26, 2004

"Hmm...I gotta wonder, can American companies do IT work for India's gubmint?"

Doubtful. While Americans like to think the world is a free trade environment, it's not. In fact, most of the emerging countries have learned the best approach is to show progress, while inhibiting free trade.

To your direct statement, you can get a contract in India provided you meet the following:
- You can prove that there is not an equivalent available resource Indian owned or where the majority of employees are Indian. [Proving that is nearly impossible]
but if you can...
- You have the fun of going through the government bureaucracy of India. For those who think, how back can it be? Imagine you go for a driver's license in the US. You wait for 8 hours and when you get to the window they give you a form to fill out. They had to "hand it to you." It could not be in a place you might take it, because the person handing it to you stamps it, with the government seal. You then go fill out the form and return the next day. Again, you wait for 8+ hours to get the form reviewed. If there is a single error (read Joel's resume notes) the form is voided. You must then get a new form. Yep, go back to the first line tomorrow.

To avoid this, you hire a local firm to do the paper work. This still takes four to sixteen weeks. Once the paper work is in, it is now open to an administrative review. To be candid, I have no idea what happens here. In fact, I don't think ANYONE knows. It appears you send your paperwork into hell and somewhere six to twenty weeks later, they send it out again for comment/clarification. Usually, this is to answer questions, provided in the form but that does not matter.

I could go on, but the fact is they have built a system to ensure that they never reject you so you cannot make a claim. And it really does not matter if you are going for a government contract or an in-country contract, the process is nearly identical.

I am sure they are laughing all the way to the bank at how easy we make it.

MSHack
Monday, January 26, 2004

from the article that someone linked to a little while ago.

"In keeping with this, we understand that the Indian government has recently decided to award two large contracts to US IT companies in connection with computerisation of the income tax operations," said Karnik.

j b
Monday, January 26, 2004