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.

[Billy_bob_bob]

Oh please. You've read Adam Smith's "The Wealth of Nations"? Are you familiar with the tariff policies put into place by the founding fathers? Would you say that the founding fathers were "Marxists"?

[mylife]

Jeez Taxrelief! you are quick with that razor!

[Huber]

I am in Connecticut. I have been unemployed for the last 3 months despite 25 or so resumes a week going out.

I also lived in Connecticut and apparantly was employed by some of the same employers as you. In fact, you may have known my father. However, I took a risk 7 years ago and moved. By moving I acquired a new perspective, learned a new regional culture and also found that my Connecticut experiences could be applied in new innovative ways in my new environment.

Would it have been easier to have stayed put? Yes, maybe, initially. We still miss old friends and family. But ruts have a way of sneaking up on you. We can't expect life to necessarily deal us the hand we planned for. And, let's face it, we usually do our best work and experience our most rapid growth when under stress in a sink or swim situation. So, if you can't find a good position in aerospace design in Connecticut, maybe look for a path other than aerospace design in Connecticut.

One of the great things about our humanity is our capacity for adapting. This is a core concept for conservatives

Alternatively, you can stay put, and keep looking for new people to blame for your misery. If so, call Chris Dodd and Joe Lieberman, because they care about YOU.

[RaceBannon]

My only hope and source of optimism lies in knowing that God loves me and sent His Son to die for me. He promised He would never leave me nor forsake me.

All I have is thanks to Him, and all I am going through is teaching me to turn to Him for all my needs, physical and spiritual.

I have nothing in my flesh that I can trust. my education has done me nothing. My good looks has done me nothing. My physical strenght has done me nothing. I have beenbrought to the point that all I have IS God, and nothing else.

And while I am sounding the alarm about this world and decisions made, I am awaiting a spiritual body, and a home eternal. I want to leae this place like you cannot imagine! :)

God didnt tell me to quit when it got tough, nor did He tell me it would be easy. In fact, He told me it would get worse. And it did. And I can be seen through it all if I place my whole being in His trust, and turn to Him for all things, and to say thank you, for times like these, for they will bring a reward of His blessing, either in this life soon, but surely in eternity for trusting Him now by faith.

[Luke Skyfreeper]

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.

And for each and every one of those jobs, there are over a hundred applicants.

[TradicalRC]

Good questions Narses. Anything that affects others is seldom morally neutral.

Essentially, I believe in a free market. The best defender of the free market as with all freedoms is virtue.

The businesses should make their employees the bottom line rather than their profit. I doubt very highly that they even need to make a choice of either/or. They could more than likely sacrifice some profit to keep their employees. They should also make sure that they aren't hiring more than they need to.

The problems arise when one company increases its ability to compete by outsourcing, what are the others supposed to do?

Also, there are natural market forces that create unemployment no matter what noble course of action might be taken.

But one cannot really expect any form of patriotic sensibility to emerge from transnational corporations. They are strictly about the money. Our tax system should favor those companies that keep their holdings in the U.S. and employ only American workers or at least an overwhelming majority of American workers.

[TaxRelief]

You don't need a job to make money.

[mylife]

let's face it, we usually do our best work and experience our most rapid growth when under stress in a sink or swim situation.

thats the truth!! Stay out of the way of a motivatied man!

[Centurion2000]

If the Democrats really want this issue, it will be the wedge issue that will give them the White House, the House, and the Senate in 2008

All a democrat has to do is use this issue and border security and the elimination of GATT/NAFTA and he/she WILL win.

[RaceBannon]

I dont have the means to move. I have a truck, but my bank account was drained last October when I got the shaft from that employer. Been scraping ever since.

Your Dad work at Kaman? I was there 1982 to 91, then 93 -94

[Rightwing Conspiratr1]

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? Fast food service.

[mylife]

You don't need a job to make money.

Well dont leave us hanging, Whats the secret to financial independence without WORK?

[Huber]

my education has done me nothing. My good looks has done me nothing. My physical strenght has done me nothing.

Just out of curiousity, would that be government school education?

[TaxRelief]

"When you want to find a better way to accomplish a job in less time, assign it to a lazy man..."

(Ben Franklin, paraphrased)

[Pukin Dog]

I was not going to respond to you, based on your earlier wierdness, but I want to remind you of one thing.

When your job is not only to risk your life, but to train others who are also willing to risk theirs; to take responsibility for turning a young yuppie into a weapon before he can kill himself, and maybe others; to leave your life on hold for six months of the year either at sea, in school or some other nessesary training, and to do it PERFECTLY each time out or lose your job, just how much should you be paid?

Man(if you are a man),you are so out of line, you don't even know. You think what you want, knowing that people with more guts than you are still out there protecting your right to be wrong.

I've had enough. Carry on.

[FR_addict]

But one cannot really expect any form of patriotic sensibility to emerge from transnational corporations. They are strictly about the money. Our tax system should favor those companies that keep their holdings in the U.S. and employ only American workers or at least an overwhelming majority of American workers.

Totally agree.

[Billy_bob_bob]

Agreed, IF they can also show they are strongly pro 2nd amendment. At that point the Republicans will find themselves up against strong competition.

[Luke Skyfreeper]

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.

Yes, there are definitely job postings for nonexistent jobs. There is at least one company out there that does a LOT of these to get you to visit their web site and submit an application for the nonexistent job. Once you've submitted an application, I've no doubt they'll say, sorry, we don't have a job for you right now, but we can help you find one if you send us...

[mylife]

Hehhehe!! I dont know what to make of you!
Are ya saying that the best way to approach life is that it is a pleasure? :^)