India Seeks To Introduce 'Lou Dobbs Approved' Skype Ban To Hamper Offshoring Industry
from the short-term-thinking dept
That last point seems particularly important in this latest case. Broadband Reports points out that India is working on a proposal that would ban the use of "unlicensed foreign" VoIP providers such as Skype or Net2Phone. The problem, you see, is that Skype and its ilk aren't paying the 12% service tax and 6% revenue share that the Indian government demands. Of course, by making it more expensive to do telephony in the country, it seems like they're only hurting the call center business that has employed so many people lately, which probably leads to much bigger problems than a small cut in tax revenue. There are other countries around the world greedily looking at India's offshoring business. With India facing a labor shortage of skilled workers for these jobs, labor wages are increasing as well. If other countries can offer both cheaper labor and cheaper telephone service, the highly touted Indian offshore call centers may no longer be able to compete -- at which point, the tax losses from those firms losing business will greatly outweigh the 18% not received from Skype.