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Today's economic environment is forcing companies to assess their core competencies and identify more efficient operating modes. This analysis encompasses strategic sourcing options such as relocation and consolidation to use shared services, insourcing, outsourcing and co-sourcing. The precise tax implications of each option should be a key part of the cost/benefit analysis, because in some cases the tax impact is very significant. In some instances, the decision process advances before the full tax impact is understood and measured.
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