Outsourcing hits US techies hard

Times of India ^ | MAY 26, 2003 | CHIDANAND RAJGHATTA

[Lessismore]

WASHINGTON: On a recent April afternoon in Silicon Valley, moments after he was told he had been laid off from his computer programming job at a Bank of America training centre, Kevin Flanagan stepped into the parking lot and shot himself dead.

Some of America's technology workers, who like Flanagan have also had to collect pink slips over the last several months, think they know why Flanagan took his life: Bank of America not only outsourced his job to India, but forced him to train Indian workers to do the job he had to give up.

In the weeks since his death, the techies have used the incident as fuel to fire a campaign against outsourcing to India, an issue that now seems poised to become a major sticking point between the two countries. Several US states are already considering legislation to ban or limit outsourcing.

Bank of America is one of several major US corporations – General Electric, Microsoft, Intel are among others - under scrutiny for outsourcing jobs to India. The Bank created what is called a "Global Delivery centre" in 2000 to identify projects that could be sent offshore.

Since then it has signed agreements with Infosys and Tata Consulting Services (TCS) to provide solutions and services.

In an e-mail exchange with this correspondent, Kevin's father Tom Flanagan said "a significant reason for which my son took his life was indeed as a result of his job being outsourced."

"Did he blame India for his job loss? No. He blamed the "system." He couldn't understand why Americans are losing jobs. Rather I should say he understood it economically, but not emotionally," Flanagan said.

Bank officials, who did not return calls relating to Flanagan's death, have said in the past that the deal with Indian companies would effect no more than 5 per cent of the bank's 21,000 employees, or about 1,100 jobs, in its technology and operations division.

According to some surveys, the US has lost at least 800,000 jobs in the past year and some 3.3 million jobs will move overseas over the next few years because of outsourcing, mostly to India.

The Bank has also acknowledged that it had asked local workers to train foreigners because such knowledge transfer was essential. According to Tom Flanagan, his son was "totally disgusted" with the fact that he and his fellow-workers had to train foreigners to do his job so they could take over. "That sir is a travesty," he said in one e-mail.

US tech workers are challenging the corporate world's claim that it is outsourcing work to improve bottomlines and efficiency. Some analysts have also pointed out that US corporations were being forced to tighten up by the same people who are moaning about outsourcing, and who, heavily invested in the stock market, demand better performance.

But on one website that discussed the Flanagan case, a tech worker pointed out that data processing consumed only a small per cent of revenues and was hardly a drain on the Bank's profit.

"(It is) a prosperous bank which has let greed trump any sense of patriotism or social responsibility," he fumed.

[Lurker]

Another coward takes his own life rather than adapt to changing circumstances.

I don't know what's more pathetic, the guy who sucked the gun or the guys who are using it to advance their own agenda.

They both make me sick.

L

[-YYZ-]

I know why makes me sick. Clymers like you.

[BrooklynGOP]

What do you do?

[Mr. Jeeves]

But on one website that discussed the Flanagan case, a tech worker pointed out that data processing consumed only a small per cent of revenues and was hardly a drain on the Bank's profit.

"(It is) a prosperous bank which has let greed trump any sense of patriotism or social responsibility," he fumed.

Leaving aside the Marxist outburst, I doubt that B of A is spending only a small percentage of revenues on IT. For any large bank, IT is a gigantic, draining expense that is absolutely necessary, even though it isn't one of the firm's core competencies.

[Texaggie79]

Who are the "guys" you speak of?

[Incorrigible]

I went to a farewell party on Friday for an Indian guy who came to work in America 4 years ago.  I hired him and he was definitely one of the best hires I ever made.  Well, that company is a shadow of itself and we went our separate ways.

Now his software company is outsourcing its development to India.  He would like to stay, and I would like someone with his skills to stay here as well.  None-the-less, he and his family are on their way back to Bombay next month where he'll work for the outsourcing company.

An ironic twist I suppose but the trend worries me overall.

After spending countless hours in the science library and computer lab (mostly with foreign students incidentally) to get my Engineering degree in the 80's, I always encouraged US born high school kids to challenge themselves and study engineering and math.  Now, the payoff for all that work seems to be lower and lower and I can understand if kids are discouraged from pursuing an engineering major.

When will the trend to outsource lawyers start?

[RedBloodedAmerican]

So, he's a victim because of outsourcing? What a crock.

He CHOSE to take a life. He COULD have looked for work elsewhere.

This article is a bunch of crap, only for the "**wahhhhh** we are getting outsourced" agenda.

[Lessismore]

This is the wonderful Hindu society that we are giving our jobs to --

http://magma.nationalgeographic.com/ngm/0306/feature1/index.html

To be born a Hindu in India is to enter the caste system, one of the world's longest surviving forms of social stratification. Embedded in Indian culture for the past 1,500 years, the caste system follows a basic precept: All men are created unequal. The ranks in Hindu society come from a legend in which the main groupings, or varnas, emerge from a primordial being. From the mouth come the Brahmans—the priests and teachers. From the arms come the Kshatriyas—the rulers and soldiers. From the thighs come the Vaisyas—merchants and traders. From the feet come the Sudras—laborers. Each varna in turn contains hundreds of hereditary castes and subcastes with their own pecking orders.

A fifth group describes the people who are achuta, or untouchable. The primordial being does not claim them. Untouchables are outcasts—people considered too impure, too polluted, to rank as worthy beings. Prejudice defines their lives, particularly in the rural areas, where nearly three-quarters of India's people live. Untouchables are shunned, insulted, banned from temples and higher caste homes, made to eat and drink from separate utensils in public places, and, in extreme but not uncommon cases, are raped, burned, lynched, and gunned down.

[Incorrigible]

Willie Green, call your office!

[Licensed-To-Carry]

My company is outsourcing some DP areas to India. They pay to bring a bunch of Indians here to America for training. After they have been here for a while, they won't to go back to India.

The get a H1B visa, train here, then quit, so they don't have to go back.

How you gonna keep 'em down on the farm, after they've seen Paree.

[bribriagain]

I'm scheduled to speak at a graduation ceremony of control system engineers this week. I'm not sure what to tell them, given the automation/control industries current slump.

[Hacksaw]

Another coward takes his own life rather than adapt to changing circumstances.

I agree - he could have found a good job washing dishes.

[Ed_in_NJ]

Tell 'em to stay in school and get a Masters in International Business -- that way they'll at least be able to go to whatever country is hiring at the time they get out.

[Pukin Dog]

I agree with you, 100%.

I am sick of Americans thinking that they are intitled to employment without competition. The other person using this death to advance an agenda which suggests that Americans need help to deal with foreign competition is even worse than the suicide.

I do not understand what the big deal about IT workers is anyway. Things change. Why didn't the man training his replacement just resign? Did he have no savings and living paycheck to paycheck? If so, who's fault is that?

We are currently supporting 39 weeks of unemployment insurance for those who cannot find work. I think the coward would have just found another reason to give up if not for this one.

Americans just do not realize how good we have it over here. There are people in other countries willing to work harder for much less. Maybe instead of trying to keep them out, we should develop a set of values that insure we do not become less valuable workers to this nation's employers.

[xJones]

According to some surveys, the US has lost at least 800,000 jobs in the past year and some 3.3 million jobs will move overseas over the next few years because of outsourcing, mostly to India.

The Bank has also acknowledged that it had asked local workers to train foreigners because such knowledge transfer was essential. According to Tom Flanagan, his son was "totally disgusted" with the fact that he and his fellow-workers had to train foreigners to do his job so they could take over. "That sir is a travesty," he said in one e-mail.

Gun suckers? What a nice way of describing suicide by a desperate man.

No, I know several of the IT people that can't find jobs, all the jobs are going to Indians. Market place economy and Ayn Rand lives? No, it's average Americans with very good resumes who can't find jobs because it's being out-sourced and they're being forced to train their foreign replacements. Let's hope that you are in a secure market and not worried about such problems.

[PiP PiP Cherrio]

Here, here, I agree. The cowards way out by taking ones own life instead of adapt, adjust and overcome your setbacks.

[johns4]

I wonder how many jobs in total, and what sort, the US is losing to outsourcing in India?

[redbaiter]

The market was sending him a signal that his training skills were more highly prized than his data-processing skills. It is sad that he did not listen. He could have been well on his way to a rewarding and interesting career.

[lonestar]

Do you have a clue what the job market will be in 4 years? What I'm asking, what should this years high school grads be majoring in for future job potential?