Indian BPOs - Waking up to the Philippines Opportunity? 2

Case study 1

Indian BPOs - Waking up to the Philippines Opportunity?

Yoichi Horibe

              India has a huge problem because of high tax and cheap dollar. However, this solution should be resolved by tax haven like Cayman Islands, British Virgin Islands and so on. Their outsourcing business is available for world class business. 

              Actually, high US dollar brings about bad influence for India because their rupee is strong.  This influence brings about decreasing export business which is like outsourcing. It is not only outsourcing but also common products. These goods will be low price because they will not be bought by foreign customer. This is called deflationary spiral.

              Why Indian cannot get a profit by storing rupee?  The answer is global standards prohibit printing money when country get money from exchange transaction. These Indian problems also exist in Japan.

             Philippine is also good tax haven and good infrastructure. They could have a strong connection with Western culture.

              In conclusion, Indian should use tax haven. Their government doesn’t help their country and their excellent companies will die. Otherwise, they should build their companies in foreign countries as headquarters. Repeatedly, this is almost the same situation as Japan. I've found something congenial in India since I read this case study.