The American Lawyer reports that law firms don’t like alternatives to the billable hour because they fear that cases will take an unexpected turn (leaving them in the position of having to devote substantially more time to a case than they originally anticipated). At the same time, corporate counsel fear that they will not get the quality they need if the outside firm is not compensated for all of its time. Read the rest of this entry »
The WSJ reports today that a significant number of companies are selling off their captive outsourcing centers in India(sub. req.) Companies that are looking for cash are also concluding that it may be more efficient to work with outside vendors in the areas of IT outsourcing and Business Process Outsourcing. In selling off these captives, it is not unusual for the buyer to obtain a multi-year contract for the continued provision of services to the sellor. According to the article, 500 Western companies have such centers in India.
There is an interesting article on Obama’s tax proposal in the on-line publication Knowledge@Wharton. President Obama made comments several months ago about proposed changes to the tax code that would penalize companies for offshoring jobs. But as this article suggests, the proposals under consideration would actually have little effect on companies who choose to use off shore talent. There is even one suggestion that protectionist tax policies like this might actually accellerate the loss of U.S. jobs.