Corporate taxes are often one of the top three expense groups of an outsourcing operation after employee compensation costs and office occupancy costs.

Taxes can vary dramatically across the outsourcing locations. Many Eastern European countries are at the lower end of the spectrum and have rates in the middle to upper teens. Some of the larger outsourcing locations such as India and the Philippines are at the higher end with rates in the 30s. The United States is at the high end at 40%.

Corporate tax rates are primarily sources from the annual KPMG Corporate and Indirect Tax Rate Survey.