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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: Luke Skyfreeper
He considers himself superior to us.

Unfair, and hardly worth a response.

If you were right, why would I be spending a little time engaging with you folks?

I really don't get some of you. If all you can do is sling nastiness against someone who disagrees with you, then I am going to assume you are a Democrat, because that's what they do.

301 posted on 05/26/2003 8:25:16 PM PDT by Pukin Dog (Sans Reproache)
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To: Jorge
"I'm not ready to give into the self-pity and gloomy outlook I see in this thread. "

Bravo, Jorge.
302 posted on 05/26/2003 8:26:26 PM PDT by Pukin Dog (Sans Reproache)
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To: RaceBannon
I wish you the best. Sounds like you are hanging in there and are working hard to pull yourself up in desparate times. And you will. You don't sound like a quitter. (p.s. I loved watching Johnny Quest when I was a kid.)
303 posted on 05/26/2003 8:26:34 PM PDT by NEWwoman
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To: Jhoffa_
I'm one of the very few IT professionals who saw right through this nonsense from the start. I've been against this whole "service economy" nonsense ever since Reagan first started pushing it. As far as I'm concerned a healthy economy is one that produces everything critical to the functioning of that society. When a society depends on "outsourcing" for all of its products and services and design and engineering, what has that society become?

IMHO a healthy society has jobs for everybody of all abilities. Perhaps someone isn't too swift with a computer, but they are great at making shoes. Oops, too bad. All the shoes are made in China now. Along with everything else. I've been against this whole "free trade" deal for over twenty years now, but nobody wanted to listen to me. Perhaps they'll start listening now.

Don't get me wrong, I'm all for trade with other countries. But we need to use tariffs to balance the playing field. You don't want to make tariffs so high that foreign goods can't compete, but you don't want them so low that you own goods can't compete either. You want to level things out to the point where consumers can decide on the basis of quality and not only on the basis of price.

For those "free trade uber alles" folks out there, I would humbly suggest that protectionism is inevitable. If tariffs aren't used, then currency devaluations are employed instead. Look at what China has done with the yuan, and note what we are now doing with the dollar. Not a wise trade-off if you ask me.
304 posted on 05/26/2003 8:26:51 PM PDT by Billy_bob_bob ("He who will not reason is a bigot;He who cannot is a fool;He who dares not is a slave." W. Drummond)
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To: Pukin Dog
I am sick of Americans thinking that they are intitled to employment without competition.

So Americans are supposed to compete with workers from every third world shit hole that will work for 1/3 what we can?

305 posted on 05/26/2003 8:28:37 PM PDT by SwankyC
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To: RedBloodedAmerican
On Dice I found 53 for programmers in Ct. Over 100 in Florida, almost 500 in California. 2464 nationwide, using "programmer" as a search keyword. Didn't try it without that and just in computer field alone.

The jobs on Dice are very inaccurate. Most of the jobs don't exist. I haven't figured out why they are doing this. When I was first laid-off, I thought there were a ton of jobs out there. I was surely going to have a job within a few weeks. The months passed and no job. That's when I realized how old the jobs were on Dice or sometimes the jobs never existed in the first place. I'm not sure what the logic for posting these outdated jobs is. I never figured it out. Maybe it's to get people to view their web site.

306 posted on 05/26/2003 8:29:19 PM PDT by FR_addict
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To: Billy_bob_bob
Bump..
307 posted on 05/26/2003 8:29:20 PM PDT by Jhoffa_
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To: SwankyC
Yes%2sAfety=1th honor.
308 posted on 05/26/2003 8:30:00 PM PDT by Pukin Dog (Sans Reproache)
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To: SwankyC
Yes, and with honor.
309 posted on 05/26/2003 8:30:13 PM PDT by Pukin Dog (Sans Reproache)
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To: Lessismore
Theodore Roosevelt -- Rich, elitist blowhard spends life sucking on the public tit.

Too bad the federal government hadn't found a way to tax his inheritance, eh? </sarcasm

310 posted on 05/26/2003 8:31:38 PM PDT by TaxRelief (What happened to "Less is More"? Or is that only for everyone else...)
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To: Billy_bob_bob
What you've just stated is the fulfulment of the communist plan.

Reduce the industrialized nations to the standard of living of the 3rd world since you can never bring them up to ours.

Their one world government system cannot be instituted until that is achieved.
311 posted on 05/26/2003 8:32:20 PM PDT by dalereed
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To: Jorge
And I've learned that attitude means more in life than just about anything else..including one's present circumstances. And I'm not ready to give into the self-pity and gloomy outlook I see in this thread. Sorry.

You and a few others here need to abandon the ALL YOU WHINERS ARE JUST INVOLVED IN SELF PITY kick and instead look at the reality of the situation here.

We have been abandoned by corporate greed and planned policies by the left to de-manufacture our country, either through deliberate plans or through drastic solutions to upcoming world ecnomics.

You must be someone who only got laid off once, right? I have had over 30 jobs inthe last 10 years.

30. Not because I cant keep a job, but because I live in a high tech area with only an AS, and each time the economy takes a dive, it is the BS people who get the work, and that means i go deeper into debt, and when I get work, my first priority is to pay bills,not go to school. And each time I do have money to go to school, it is usually to take upgrades in CAD to stay competitive, only now, the only CAD jobs offered in the papers in the last 6 months are for BS degreed or civil engineering, which is not my field, I am mechanical, or some obscure high end CAD that is only taught through some high priced group you cannot afford after 2 or 3 months on unemployment.

I have shown more detemination just in surviving through this than any of you so-called heros here that think you are taking the high road calling us whiners, I havent quit yet, nor am I quitting, So take your accusation and stick it. I would love to see you go through half what I have been through in this state looking for work and keep your so-called optimism. My outlook is not defeat, it is reality. And don't tellme you live by the grace of God unless you have been tested. I have been tested like you cannot imagine, and I am well aware that the only chance i have of surviving anything is by His grace while you yourself have probably not even been through 1/10 of what I have professionally.

It is time for people to take stock of what is going on in this country and smell the coffee!

This globalization is killing our manufacturing base, and if you dont believe it, you havent been to New England lately. Go to the CT Job Site, http://www.jobsearch.org/CT/seeker/jobsearch/quick?action=seeker_search_process&JobSearch_pageLink=2, that is just page 2 of my closest qualifications.

In phone calls with diffferent agencies, I have been told they receive 500 resumes A DAY!!

I want anyone here to tell me they have that competition. And dont try to be so smart and tell me to move. You need money to move. You also need ajob to move to, and every out of state job I have looked into told me that I have twice the job competition in those states with more jobs, like California or Colorado.

Dont tell me I aint tryin, you dont even know what trying is.

312 posted on 05/26/2003 8:33:05 PM PDT by RaceBannon
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To: Pukin Dog
I have refained from challenging people, but I would be curious to know how many of those hurting right now are paying for more than one car, and watching DirecTV?

I've no doubt of the existence of such people. Personally, I have never in my life paid for cable TV, and drive a 14-year-old van with 250,000 miles on it. It's important to have a van, since we have 5 children.

I also have a 19-year-old two-door car which I used to get to work (thus saving our highly valued family vehicle from the additional miles and wear and tear), but it's currently broken, and there is hardly any way I can afford to get it fixed.

313 posted on 05/26/2003 8:33:55 PM PDT by Luke Skyfreeper
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To: TaxRelief
Ya A lotta countries have been involved in the technologies of the last century...America has been the leader without a doubt. the Ideas of this country have revolutionized the world, but I can understand that many americans are upset that foriegn coutries seem to be benefiting from our ideas even as americans suffer.

That said, those ideas werent mine....

314 posted on 05/26/2003 8:34:30 PM PDT by mylife
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To: TaxRelief
There is God and a belief that God will provide.

Yeah, I've been struggling with that one for the past 4 years.

315 posted on 05/26/2003 8:35:02 PM PDT by Luke Skyfreeper
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To: LibertarianInExile
What they believe is this: How a company chooses to conduct its business and develop its capital is NONE OF THE GOVERNMENT'S BUSINESS!
316 posted on 05/26/2003 8:37:26 PM PDT by TaxRelief (Remember? We're conservatives and libertarians. Minimize government...)
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To: RaceBannon
Race, without going into your personal situation, do you think times are as bad now as they were in the late 70's?

I remember gas lines, 11% unemployment and 24% interest rates. We got through it then, and we will get through it now. Before then, many people are going to experience some hard times.

Keep hanging in there, Race. I'll say a prayer for you tonight. Dont you give up.
317 posted on 05/26/2003 8:37:36 PM PDT by Pukin Dog (Sans Reproache)
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To: dalereed
There aren't any pilots that can hold a candle to Navy pilots!

Ofcourse. They are trained with tax payers $$$. Put PukinDog in the real world and lets see how he does.

318 posted on 05/26/2003 8:39:38 PM PDT by BrooklynGOP
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To: Pukin Dog
According to http://www.staynavy.navy.mil/Tools/PCC/default.asp a Navy Commander's compensation is worth about $115K. Not too shabby, considering retirement benefits of more than $3500 per month, which increase with cost of living (try getting that kind of defined benefit's plan in the private sector!). Plus 30 days paid vacation and 10 days paid holiday -- that's like they get in Europe.
319 posted on 05/26/2003 8:40:22 PM PDT by Lessismore
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To: Billy_bob_bob
As far as I'm concerned a healthy economy is one that produces everything critical to the functioning of that society.

Been reading Marx lately, haven't you?

320 posted on 05/26/2003 8:41:13 PM PDT by TaxRelief
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