Where is the best country to establish an information technology company? Let business people decide
IT support has been crucial to companies like Microsoft in order to be successful. Licenses for their IT support companies and databases are often filed within other countries in order to avoid the higher corporate taxes within the United States. The United States having one of the highest corporate tax rates in the world probably limits the amount of IT support companies that sit within the borders of the nation. In fact the United States has the second highest corporate tax rate in the world next to the nation of Japan.
It would shock me if that corporate tax ends up going up over the next couple of years. This could limit the number of new information technology consulting companies coming into the country as well. With companies like Google continuing to expand their technology consulting firms, we want those jobs to be available here in the United States as opposed to seeing a heavy level of it relocation. We don’t want to see more jobs being shipped overseas in regards to it relocation. A lot of IT relocation jobs end up going to India. This is because people from India will work for far less than American workers.
I certainly don’t see wages increasing or the labor movement in general moving forward within the nation of India in the way many hope it should. With India not really caring about global warming and issues involving carbon output, it is highly likely that more information technology consulting companies are another reason why more of them will move to India.
