According to President Barack Obama, Indian companies such as those in Bangalore have been a significant beneficiary of U.S. tax laws and the President aims to change that. The U.S. has created "a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, N.Y.," Obama said. Current U.S. tax policy gives companies that create jobs overseas the capability to take deductions on expenses "when they do not pay any American taxes on their profits," he added.
However, most analysts, industry practitioners and tax advisors suggest that federal tax policy changes proposed by Obama may not curb the outsourcing trend or achieve his goal of persuading companies to reduce their expansions to offshore locations.
Peter Bendor-Samuel, CEO of Everest Group, a Dallas based outsourcing consultancy, suggested that the most significant motivation to transfer work abroad is the large difference among salaries in the U.S. and many other countries. Jobs in locations such as India or China may cost only one-sixth that amount when compared to the United States, Bendor-Samuel said.
http://www.outsourcecompare.com/obama.htm