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Outsourcing hits US techies hard
Times of India ^ | MAY 26, 2003 | CHIDANAND RAJGHATTA

Posted on 05/26/2003 3:51:30 PM PDT by 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.


TOPICS: Front Page News
KEYWORDS: catholiclist; michaeldobbs
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To: softengine
I dont know an Illbay. If our opinions are the same, I suspect I will soon.
121 posted on 05/26/2003 5:50:59 PM PDT by Pukin Dog (Sans Reproache)
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To: FR_addict
You make great points. These smug people that are going 'to hell with the laid off' don't realize that they very well could be next, and they better expect it to take YEARS to find another job if they want anything better than dish washing or burger flipping...

Those jobs aren't exactly easy to get either with all the illegals taking them in this area.
122 posted on 05/26/2003 5:52:12 PM PDT by Monty22
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To: Pukin Dog
Do you have any idea what it takes to hold a commercial licence to fly passengers? Probably not. However, the fact that I have been invited to train at Delta, American and Southwest Airlines means that I might just do alright in the private sector, should I decide to go that route.

That's fine. As I said, let them flood us with H1 pilots from India/China. There are over 2 billion people between them both. I am sure they can scoop up just enough pilots of your qualifications (or better) to put you out of a job for 25% of your pay.

The point is, I made choices that allow me to decide when I will work; choices that are available to every living American at one time or another.

That's right. Being in IT industry was a good way to make a living as well. There are plenty of highly trained people who are now out of a job. Like I said, when I see you being succesful at competing with those who do your job at 20% - 25% of your salary - then we'll talk.

123 posted on 05/26/2003 5:55:03 PM PDT by BrooklynGOP
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To: Lessismore
Oh, PLEASE! While I sympathize with folks in IT (I am one) and want HB-1 and L-1 visas turned off now, it hardly is fair to say that a military man was skimming the public dollar! Look at it this way: While we all had good jobs making beaucoup cash when the times were hot, this guy was putting his life on the line so we all could enjoy our freedom and prosper in it.

Now, times are hard. Things will get better. 90 percent of businesses in this country will NOT outsource. Most people in this country (around 85%) work for small businesses with less than 500 employees. They won't outsource.

Here is a link to the most recent ITAA forecast on high tech job trends. You'll need Adobe to read it. Click here to read a synopsis in regular html.

124 posted on 05/26/2003 5:57:05 PM PDT by Alas Babylon!
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To: Lessismore
"Both front feet in the public trough for 21 years. You're part of the problem, not the solution. "

Oh, that is real nice.

If you think those of us who risked our lives while you slept were only "in the public trough", then there is nothing much I can say to you.

When I read that, I thought of a former wingman of mine who died a horrible death 8 years ago defending your right to say such a stupid thing.

Whether you like it or not, you are welcome, you(expletive deleted).

125 posted on 05/26/2003 5:57:19 PM PDT by Pukin Dog (Sans Reproache)
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To: Pukin Dog
It is smug; to use your word, to expect no competition for a job.

Note this about India: General living expenses for a student per year is approximately US$1200 — US$1800. This includes personal expenses, lodging in students hostels and all other incidental costs. (source)

That's $100-150 per month. Now tell me how *you* would compete against a pilot who can live on $100-150 a month. Looking forward to your reply.

126 posted on 05/26/2003 5:58:02 PM PDT by BrooklynGOP
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To: Pukin Dog
I wouldn't feel so confident in the airline industry.. A few SAM attacks or bombs will kill that off.
127 posted on 05/26/2003 5:58:30 PM PDT by Monty22
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To: BrooklynGOP
Right you are, Brooklyn! Where I work, the happybabble is that they can get three from India to do the work of 1 here. Unfortunately it usually requires 5 from India to equal the 1 replaced. And the outsourcers are no fools. They usually understaff all but the "get foot in the door" projects. Also, the A-team programmers go to top payers, such as GE or B of A. Not mid-level companies.
128 posted on 05/26/2003 5:59:17 PM PDT by Ukiapah Heep (Shoes for Industry!)
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To: Lessismore
The thing with the castes, is that its hard to say. I remember joking with one indian kid that in america, every hindu is a brahman, and no untouchable ever seems to come to america.

They are a large massive group, I find it hard to put any kind of really collective sterotype on them, though there are alot of certain traits many of them do have. Hindu's in general seem to hate muslims (indian muslim or not), there is some bias from lighter skin indians towards darker skin indians (thank god they don't have an equivalent version of the NAACP there), along with smaller types of bias, that are no different from what one would find here, or in europe or anywhere else.

129 posted on 05/26/2003 6:00:05 PM PDT by Sonny M ("oderint dum metuant")
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To: Incorrigible
It's coming! An Indian-American lawyer I know is negotiating a joint venture with a law firm in India to handle much of the grunt work that associates and paralegals would do here (you can scan and and e-mail just about anything).

I seem to recall he said that lawyers in India make $4,000 a year.
130 posted on 05/26/2003 6:00:53 PM PDT by Maximum Leader (run from a knife, close on a gun)
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To: Alas Babylon!
While we all had good jobs making beaucoup cash when the times were hot, this guy was putting his life on the line so we all could enjoy our freedom and prosper in it.

You are missing the point. Military doesn't outsource, nor do they compete when it comes to manpower.

Things will get better. 90 percent of businesses in this country will NOT outsource. Most people in this country (around 85%) work for small businesses with less than 500 employees. They won't outsource.

Never say never. None of the jobs that were outsourced in the last recession came back.

131 posted on 05/26/2003 6:00:58 PM PDT by BrooklynGOP
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To: HamiltonJay
"These companies are going to come to regret much of this outsourcing... sooner or later all that confidential info that they are blindingly putting in the hands of foreigners is going to bite them big time.... "

This is a VERY good point.
132 posted on 05/26/2003 6:01:10 PM PDT by LibertyAndJusticeForAll
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To: Pukin Dog
Isn't the point of technology , especially info technology to streamline work and operations to make things more efficient?

If technology allows for world wide buisness operations it makes sense.
133 posted on 05/26/2003 6:01:52 PM PDT by finnman69 (!)
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To: El Gato
We don't (usually) conduct the training, but we generate the materials, everything from paper course materials such as student and instructor guides, to interactive courseware, to Web based training. The part I work in builds hardware/software simulator systems used to conduct training. Some virtual reality stuff, some "emulators" and some more basic stuff too.

This is exactly the kind of stuff that you can get done in India for 75% less! Your management must be nuts to do this in the United States!

But since it is for the military, I guess it is the taxpayer who is getting screwed.

134 posted on 05/26/2003 6:03:57 PM PDT by Lessismore
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To: Lessismore
Guess I'll be outsourcing by BoA checking account soon!
135 posted on 05/26/2003 6:05:13 PM PDT by warmath
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To: FoxPro
How long do you think that will last? If you live in the DC area and you don’t have a security clearance, forget about it, your toast. It is time to move on

Indeed it is. What is the problem with getting a security clearance? Some mistake in your past? Those can be forgiven if not too serious. We had a guy in our department, that had gotten caught smoking dope when he was in the Army in Vietnam. (and I don't mean just MJ). He not only beat the dope, he managed to get first a standard clearance, and then a compartmented one. Unfortunately for him, I think he moved over from the defense side of the house, to the IT side. Well, he "knew" that Clintonsizing was coming to the defense side, it had already started in fact, and that the defense group would probably be sold, (it was) I just don't think he saw the freight train coming when he got out of the frying pan and jumped into the fire (to mix a metaphor rather badly. :) )

136 posted on 05/26/2003 6:05:17 PM PDT by El Gato
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To: Tokhtamish
Do you see European countries exporting their skilled jobs ? No, you don't, because their powerful unions would never stand for it. European workers have a strong voice to protect their standard of living. American workers don't.

No, they're not exporting their jobs, just their entire economy. What is the unemployment rate in Europe? Sure, the standard of living is protected - with mandated 5 week vacations and free universal day care. It's the socialist dream. So why is unemployment in Europe twice the US rate? hmmm...

By the way, the Europeans are outsourcing too, including from Western to Eastern Europe. They are just doing it discretely. Most likely labor leaders are complicit. They recognize that if Europe does nothing, it will be entirely marginalized economically. The European socialists are just trying to do the bear minimum that will allow them to sustain the welfare state and to make up the difference using the "oil for palaces" program, etc.

137 posted on 05/26/2003 6:05:50 PM PDT by Huber
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To: BrooklynGOP
It is not about what you do.

Each of us should strive to make a living doing something that we would otherwise do for nothing. Going into any particular industry because of how well it pays is really not too smart. Times and conditions change.

You will never reach your true potential by picking a job based on salary. We are all gifted at something, and our mission in life is to find out what it is, and do it to death, until someone decides to pay us to do it. My granddad told me that when I was young, and it is still true today.

If Airlines ever reach the point where expense for a pilot is more important than experience, why would I want to work for them? I dont care if a good pilot comes from India or China, many already do. If one puts me out of work, so be it. In a democracy, I am not entitled to a job. If you think you are, then you might try a place like Cuba.
138 posted on 05/26/2003 6:07:56 PM PDT by Pukin Dog (Sans Reproache)
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To: Rebelbase
There is one major issue, the overseas customer service stinks. I returned my Dell becuse of it.

139 posted on 05/26/2003 6:08:24 PM PDT by mlmr
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To: Monty22
Why should a person be confident in any industry? They are not there to serve us, they are there to make money. If they fail, they should die.
140 posted on 05/26/2003 6:09:39 PM PDT by Pukin Dog (Sans Reproache)
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