Obama admin promotes outsourcing

[WhiskeyGirl]

Obama admin promotes outsourcing

Posted: 09 Feb 2009

Here's what the Journal published on Jan 27: "IBM Chairman Samuel Palmisano told workers in an e-mail last week that worldwide employment topped 400,000 at the end of 2008, up from 386,000 at the end of 2007. He didn't break out U.S. employment, and IBM spokesmen declined to do so."

IBM's unwillingness to publicly disclose its massive offshoring operations is no surprise, especially as it lobbies Congress and the Obama Administration for billions in taxpayer handouts as part of the economic stimulus package now being debated by Congress. What is remarkable is that the company is able to get away with it in the current job market with this President and this Congress.

...a new initiative by IBM, called Project Match, which is supposed to connect displaced U.S. workers with job openings in low-cost countries like India. But the catch here is, of course, that U.S. workers would be paid Indian salaries. How many U.S. workers can take those jobs and still hope to retire back in the U.S.? The answer is none.

...The EE Times story that detailed the stealth layoffs and reactions of IBM workers, appeared on the same day that the President was chumming around with IBM's CEO Palmisano. Here's what President Obama said about why he invited to the White House Palmisano and nine other CEOs who are offshoring jobs:

"They make things, they hire people," the President said of the meeting participants. "They are on the front lines in seeing the enormous problems in the economy right now. Their ideas and their concerns have helped to shape our recovery package in order to get this economy back on track."

Apparently this wasn't about hiring highly educated Americans, for good paying jobs in America.

Can President Obama really be this naive? Or is it simply that he doesn't believe offshoring matters?

...On the very same day he was meeting with "CEOs [who] outsource American jobs"--a phrase he repeatedly and derisively used during his campaign, he named McKinsey's & Co.'s Diana Farrell to his National Economic Council, the inner circle of economic advisors in the White House. Farrell has done more to promote outsourcing than nearly anyone else in America.

...Farrell's firm made millions of dollars consulting with companies, advising them to accelerate their offshoring. And she publicly made the rounds to convince policymakers and the public that offshoring was good for them and the country. It's also no coincidence that the IBM and Nasscom, the Indian IT outsourcing industry association, were major McKinsey clients. They benefited from McKinsey's lobbying as well as its consulting services.

Business as usual?  Where is the change for America?  Returning good paying jobs to America?

On Feb. 3, President Obama nominated Sen. Judd Gregg (R-N.H.) to be the next Commerce Secretary. Gregg is a staunch proponent of outsourcing and expanding the H-1B visa program, destroying even more job opportunities for American engineers.

During the campaign, then-Senator Obama pledged to put American workers ahead of corporate profits. Now we know that this was simply a bad joke.

Maybe Wall Street executive are just a diversion for the American media?  How many of those Wall Street firms have outsourced their IT, customer service, and other business functions to offshore locations?

The larger issue though is why President Obama can get away with these inexcusable and hypocritical actions? It's really quite simple: American workers have no real representation in Washington. While unions, like Alliance@IBM are doing yeoman's work on labor issues, it's simply not enough because their ranks, and therefore their resources, are too small.

read more here -

http://www.eetindia.co.in/ART_8800562199_1800001_NT_9bdcfff7.HTM

I know a woman who worked to put her son through school, he graduated with an engineering degree.  He has been unable to find a job since he graduated last June, 2008.

I've heard of others that have either returned to the countries of their birth because even with advanced degrees in IT or engineering, they lost jobs and cannot find new jobs.  Or, they find only low paying part time McJobs.  No opportunity.  Life is better today in the places they left behind years ago.  They just need to sell their houses and move. 

Why train and hire math and science teachers?  Newly graduated student resources are already being wasted, just like those young people in the D.C. shelter.

How sad for America.     A stimulus bill to provide a few construction jobs for Americans and the best plums sent offshore to make someone else's life better.

What is the cost of outsourcing?  What is the cost of free trade?  Global carpetbaggers? 

When will Americans matter to their government?  Whatever happened to fair trade?

jmho

[nonesuche]

WhiskyGirl - hat's off to you for catching this one, so many are trying to sweep it under the rug.

Yes McKinsey has been pushing offshoring as best practices for this century, in fact IBM hired McKinsey to develop and define their delivery centers of excellence offshore? The Project Match has accomplished what Sam P wanted it to, now there is next to no software development on US shores, only sales staff. Infrastructure engineering will soon be in the same boat but some client companies have caught on now, and are requesting within their contracts that only US facilities/staff support their infrastructure.

With so much of our financial and banking systems offshore now, it's just one step closer to terrorists taking control of all we own, all we save, and all we earn.

It should be interesting if Sam P does get some of the stimulus dollars, particularly when Obama is advancing a 500K cap for CEO's. For the record, Sam P earned 34M last year.

I won't hold my breath that Obama is sincere about stopping the offshoring.

[WhiskeyGirl]

I think free trade (associated with global carpetbaggers) is one of those tired old political arguments that needs to change. 

Free trade is not the same as fair trade.

I am beginning to think the "we have to share our success with everyone" means everyone but those in the U.S.  Competing with highly educated people in India, means move there for a job, and they probably don't want anyone competing with their citizens for jobs.

"Sharing our success with everyone" doesn't seem to mean that we respect the hard work and prosperity that others have created. 

I don't know why people in Chicago can't compete with people in L.A.?  Why can't there be prosperity in our own backyard?  It doesn't make sense to keep offshoring everything.  Global carpetbaggers seem to move everywhere to make lots of money, but don't do much for the local economy.  In the long run, I don't think goods or services are any cheaper.  It's not about a sustainable local economy, it's just about getting as much money as possible and moving on.

What ever happened to looking out for the people of your community or nation?  I sometimes wonder if the global financial meltdown was due to poor IT systems - programmed never to show bad news.  Common sense people and red flags said there was a problem years ago.

It doesn't seem to matter how many science or math teachers we educate, how many schools be build/rebuild, or how many IT or engineering students we graduate in the future.  There aren't jobs for yesterday's graduates, today's professionals, and future generations.

There only seems to be jobs for a few today in the construction business.  When I drive by road and other construction workers, they tend to be overwhelmingly male. 

India and China are such large markets, I think the US is just a drop in the ocean.  Fair trade, there are reasons India is so attractive, if government values the American lifestyle, they need to ensure that the playing field is level with regard to trade with other countries.

jmho




 

[WhiskeyGirl]

Code:

Estimates suggest that 200,000 to 400,000 jobs have moved from the U.S. since the outsourcing trend began in the 1990s, which is still a fraction of the some 138 million jobs in the U.S. The Information Technology Association of America (ITAA) says only around 2 percent of the 10 million computer-related jobs have been sent abroad; 12 percent of IT companies have outsourced work, compared to 3 percent of non-IT firms. [b]The highest projection for outsourcing is by Forrester Research: [u]a loss of 3.3 million U.S. jobs by 2015, including 1.7 million back-office jobs and 473,000 IT jobs[/u], which will create a dent in the U.S. job market but not the wreck everyone fears.[/b] 

According to Obama and others, the recent economic job losses are catostrophic.  What will they look like when 3.3 million more go by 2015?   No train wreck?  Why? 

http://www.transitionsabroad.com/publications/magazine/0601/work_in_india_in_information_technology.shtml

Who's going to pay for the tax increases necessary to fund porkulus?  The stimulus package that stimulates everyone but Americans?

"January's sharp drop in employment brings job losses to 3.6 million since the start of the recession in December 2007," Hall said in a statement, and "about half the decline occurred in the last three months."

http://uk.reuters.com/article/businessNews/idUKTRE5161QR20090207?pageNumber=2&virtualBrandChannel=0

3 million jobs is a recession all by itself.  Looks like everyone will be trying to move to India, and only foreigners will be able to afford to live in the U.S. when the currency collapses.

jmho

[WhiskeyGirl]

Estimates suggest that 200,000 to 400,000 jobs have moved from the U.S. since the outsourcing trend began in the 1990s, which is still a fraction of the some 138 million jobs in the U.S. The Information Technology Association of America (ITAA) says only around 2 percent of the 10 million computer-related jobs have been sent abroad; 12 percent of IT companies have outsourced work, compared to 3 percent of non-IT firms. The highest projection for outsourcing is by Forrester Research: a loss of 3.3 million U.S. jobs by 2015, including 1.7 million back-office jobs and 473,000 IT jobs, which will create a dent in the U.S. job market but not the wreck everyone fears.

According to Obama and others, the recent economic job losses are catostrophic.  What will they look like when 3.3 million more go by 2015?   No train wreck?  Why? 

http://www.transitionsabroad.com/publications/magazine/0601/work_in_india_in_information_technology.shtml

Who's going to pay for the tax increases necessary to fund porkulus?  The stimulus package that stimulates everyone but Americans?

"January's sharp drop in employment brings job losses to 3.6 million since the start of the recession in December 2007," Hall said in a statement, and "about half the decline occurred in the last three months."

http://uk.reuters.com/article/businessNews/idUKTRE5161QR20090207?pageNumber=2&virtualBrandChannel=0

3 million jobs is a recession all by itself.  Looks like everyone will be trying to move to India, and only foreigners will be able to afford to live in the U.S. when the currency collapses.

jmho

(fixed my previous message)

[WhiskeyGirl]

U.S. manufacturing ...shedding 207,000 workers after cutting 162,000 in December...An index measuring total paid hours for factory workers dropped to its lowest level since 1940, department officials said.

We have a much higher population than we did in 1940.

Construction industries dropped 111,000 jobs in January after 86,000 in December and Hall said that pace of cuts was accelerating. Retail businesses cut another 45,000 positions after shedding 82,700 in December.

There were 121,000 job losses among professional and business services providers in January on top of 106,000 that were eliminated in December. Only education and health services added jobs as did the government.

I wonder how the construction jobs in the stimulus package are going to replace the manufacturing, retail and professional jobs?

"It is just another confirmation that we're are in a deep and long recession, and the bottom is not even in sight," said Robert MacIntosh, chief economist for Eaton Vance Management in Boston. "Manufacturing is incredibly weak -- it's going to be a long haul."

Manufacturing may not recover for generations.  No money for high paying jobs.

http://uk.reuters.com/article/businessNews/idUKTRE5161QR20090207?pageNumber=3&virtualBrandChannel=0

I believe this is a depression for the U.S.  Maybe a slight recession for some like China, but a depression has landed on our shores.  No iron potato or iron grits jobs in the US.

imho