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Monday, September 17, 2007


CA is one of the world's largest IT management software providers. Founded in 1976, CA today is a global company with headquarters in the United States and 150 offices in more than 45 countries. CA Philippines has announced recently that it is closing operations due to worldwide restructuring. However, it will continue to serve its clients through their channel partners.

It seems that large multi-national sales companies are no longer considering maintaining offices outside their country as an important marketing strategy. I cannot blame them. Why should they shoulder large expenses for salaries of employees and pay additional taxes abroad if they can effectively transact business through internet facilities? This may pose a problem for third world countries whose labor force largely depends on fix foreign capital. However, it could open business and employment opportunities in the field of internet-based telecommunications, which centers on customer service, product information and clientele analysis.

I will not wonder in the near future if governments will begin to restructure tax codes to include imposition of taxes on internet use. I am sure it is going to generate public opinion and debates among law making bodies.

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