IT firms to leave India?

Posted on April 3, 2008  /  0 Comments

Blueshift is one of the currently India based companies looking to move to neighbouring countries like Malaysia or Singapore where they believe it would be cheaper to operate.

“The corporate tax regime in this country is a tough 33% whereas when I look at neighbouring country Singapore it is only 18% at the highest level,” says Blueshift’s chairman Sankaran P Raghunathan.

“In fact, most of us have to pay only 7.5%. That’s a huge difference.”

Mr Raghunathan is also concerned at the way costs are rising in Chennai.

“Some 10% of our revenues are spent on rentals here,” he says.

“We pay more than $1 for a square foot of office space here. In Kuala Lumpur the same costs us less than $1 and I get class A infrastructure.”

Read the full story in BBC here.

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