Technology and Telecommunications

In the increasingly seamless and competitive global economy, offshoring of important business processes is an important tool in the US multinational's arsenal. China's new hunger for capital, technology, and inward investment make it an attractive destination for such outsourcing, and it is not alone. India and several countries in Latin America and Africa are seeking to position themselves as offshoring havens. However, in all these cases, the local and US tax exposures must be identified and managed in order to secure the benefits being sought. The foregoing, nonexhaustive enumeration of issues is offered as a rough guide to what must always be a highly particularized analysis for each US Group and each offshoring decision it makes.