Indian outsourcing companies say SOX accounting regulations are helping their businesses grow 50% per year, according to the WSJ ($). They offer software, database management and compliance related services at one third the cost of a U.S. accounting firm. Public companies are expected to spend $5.8 billion on compliance in 2005. The law requires companies to manage huge databases to keep track of receipts, approvals, and other bits of paper that must be stored for years. An obvious measure to combat outsourcing is not trade protectionism, but repeal of the onerous Sarbanes-Oxley Act.
Source link: http://archive.mises.org/3826/rx-for-outsourcing-repeal-sarbanes-oxley/
Rx for Outsourcing: Repeal Sarbanes-Oxley
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It must be really wonderful for Indian offshoring companies! First, Y2K. Then restrictions on H1B visas. Then HIPPA and now SOX accounting regulations. Looks like US congress is really hell bent on driving all the IT jobs offshore!
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