[IT Grunt]

These mostly Indian firms contract with large companies to provide low-wage and low-skill programmers to work onsite. This is because day-to-day back office operations of tech intensive companies like banks require a physical onsite presence 24/7. These functions are not easily offshored due to the logistical obstacles of dealing with a workforce on the other side of the world.

The American companies want their cake and eat it too, so in order to reduce costs and have the labor onsite, they turn to bodyshops or Indian I.T. consulting outfits like Infosys,WiPro or Tata. WSOCTV in Charlotte has a story how a local bank engaged in this process to avoid hiring American programmers.

In Charlotte, Wachovia Bank has contracted with a bodyshop called Synechron to provide low-wage I.T. staff in order to displace Americans. It is a win-win for the bodyshop and Wacovia. However, it is little more than indentured servitude.

http://itgrunt.com/2009/04/foreign-workers-could-be-replacing.html

[Wissa]

What do you think should be done about it?

[presently no screen name]

Welcome to FR!

[meadsjn]

However bad it looks from your corner, the reality is 1000 times worse.

Outsourcing to US companies a couple of dacades ago was the beginning of the end of this country's economy.

Outsourcing to foreign countries, and importing low-skill IT workers, (as you've described, and very well), are the final stages of a spin-down to the next Dark Ages.

You're talking about zombie companies, already dead but propped up beside the jukebox. The reason they are being propped up, instead of being allowed to die and disappear, is worse than any horror movie. Their only remaining purpose is to suck the residual wealth out of customers and taxpayers, until our corpses are bone dry and this nation is a sad footnote in World History.

[ex91B10]

...and low-skill programmers...

I beg do differ.