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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: clamper1797
I lived thru it most of last year .... 10 years is inconceivable.

I wasnt kidding, I think it is now 30 jobs since 1994, and it was 10 in the last 2 years since 2001.

Too many here take plain talk as a sign of people giving up. I aint a quitter, if I was, I would have suicided out many years ago.

But all these people saying that it will all be over with a tax cut blah blah blah free trade works nonsense...

Free Trade and capitalistic competition with a socialist government that props up those business that left and went there, that is so sad it is pathetic! And those people call THEMSELVES the Capitalists here??

Those companies overseas are not engaging in free trade capitalistic market ideas, they are socialists propped up by their governments, and they can undercut us at every step. All they need to do is raise their prices or their taxes, since payroll to a slave is not an issue!

661 posted on 05/27/2003 10:43:00 PM PDT by RaceBannon
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To: Texaggie79
In fact I do intend to start very gradually while holding a pay-the-bills job, when I do go into business for myself again.

Part of it too right now still has to do with the availability of emotional energy. I'm still slowly recovering from a period of severe depression that I went through a few months agao, and adjusting to increasing demands of the job that I'm currently doing.
662 posted on 05/27/2003 10:43:19 PM PDT by Luke Skyfreeper
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To: Arthalion
Professional Courtesy
663 posted on 05/27/2003 10:44:43 PM PDT by drlevy88
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To: RaceBannon
Race, I can relate. Hang in there, and don't listen too much to people with a "ministry of discouragement" who don't personally know you and your efforts.
664 posted on 05/27/2003 10:46:36 PM PDT by Luke Skyfreeper
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Theoretically, if everyone here is unemployed, highly skilled, and is obset over obscene corporate profits, why don't they start a company of their own. Assuming they are as hardworking and intellegent as they purport, with a few hours of work a day they should be able to start the next Microsoft.
Well........ who is with me?
665 posted on 05/27/2003 10:48:37 PM PDT by Dat
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To: RaceBannon
Strictly economically speaking, AMERICA benefits from the deal and the socialist country eventually loses out in the end.

Our market gets a product or service that costs our economy less resources to achieve. As I said before, this frees up resources to be spent elsewhere.

Let's go back to the ever popular "banana example". Our market would be much more taxed if we consumed bananas grown in the US. As we all know, it would cost significantly more than in more tropical climates. Now, let's cut out the climate aspect and say that we can get bananas cheaper from other countries because their government "props up" the banana industry in their country. From our point of view, we are still getting the less expensive product, and our economy still benefits from it.

Therefore, it is moot, how other countries supply the cheaper product or service. The fact that it is provided is a benefit to the consumers and business owners that do not reside under those socialist policies.....
666 posted on 05/27/2003 10:49:07 PM PDT by Texaggie79
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To: BrooklynGOP
What a post number to get.....
667 posted on 05/27/2003 10:49:56 PM PDT by Texaggie79 (pimps up, hoes down!)
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To: Texaggie79
.....while being a detriment to those who used to make their livings providing said product or service.

Just wanted to provide the rest of the sentence.
668 posted on 05/27/2003 10:52:23 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: Texaggie79
But you are describing banans and oranges! (I couldnt resist)

Bananas were never made here! Those jobs didnt go anywhere! We got them from an outside source to begin with!

Not a good analogy. Bump me on the next try. :)
669 posted on 05/27/2003 10:53:26 PM PDT by RaceBannon
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To: Texaggie79
It's because you are evil. EEEEVVVVIIIILLL!!!!

Sorry, couldn't resist.
670 posted on 05/27/2003 10:53:54 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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Comment #671 Removed by Moderator

To: LibertarianInExile
But there is tremendous upheaval in the lives of those affected in the meantime, and that there is no way that those without jobs will ever be able to work again when an entire industry has moved lock-stock-and-barrel overseas seems to be something free traitors simply care nothing for.

First off, I would like to know why you consider yourself Libertarian. You DO understand that you are calling for GOVERNMENT intervention in stopping FREE Enterprises from hiring who they desire. You think government should be able to tell me that I cannot hire people overseas? Or do you want government to put a stranglehold on the economy by taxing and putting tariffs on imports? Secondly, I believe in the America that adapts. That does what it has to do to get things done. You want to hold back progress in the name of comfort. You can bring out the "Starving kids" argument just as the welfare recipients do. "How can you not support welfare? You want kids to starve?"

672 posted on 05/27/2003 10:56:43 PM PDT by Texaggie79 (pimps up, hoes down!)
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To: LibertarianInExile
Sadly we will not have "free" trade in our lifetime, nor will we ever have our economic partners playing "fair"; world geopolitics will never allow it.

Americans have free will and self determination. This is the most powerful country in the world. Why does the American citizen lie down and die before "world geopolitics"? Is it because it is easier to do that than keeping informed and holding our representatives to their pledge to _represent_ us?
673 posted on 05/27/2003 10:57:57 PM PDT by hedgetrimmer
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To: Luke Skyfreeper
I'll pray for you. You control the limit of your income. The harder and smarter you work, the more you will make.

I always like to repeat to myself the old survey where non-rich and rich were both asked what the key to wealth was. The non-wealthy mostly said it was all about lucky breaks. The wealthly mostly said it was all about hard work...

674 posted on 05/27/2003 11:04:11 PM PDT by Texaggie79 (pimps up, hoes down!)
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To: Pukin Dog
(sometimes sarcasm can be used can't it?)

You make intresting sounding points, and I'm usually not the one to worry about appearances, but if we get our products so incredibly cheap... what does that say about our society as a whole? We get crap? We get the BEST of the BEST crap? Is that good? 8^/ Do you want incredibly cheap crap? America is great because we get the cheapest crap around? Americans only deserve the finest cheap crap?

LOL! -

I can hear it now..."Why, indeed, we go to greatest extents of the earth to bring you the absolute finest cheap crap available. Heck, you'll pay more in shipping and handling than you will for the product. We guarantee it!" better yet... "We, as Americans, though our pride is still swolen with past glory, would like to say thanks to all the great outsourcerers who made it possible to get the cheap crap. We never could have made it without you guys, as our paycuts and layoffs prohibit it. We appreciate the aid you have given us in our time of need, for we so greatly need a break from the big bills we have been getting from our bankruptcy lawyers. Our children also thank you for providing them with incredibly cheap crap, for if it were'nt for that cheap crap, there would be nothing at all.

If we're lucky, our grandkids will be able to change this trend (doubtfull), but hey, right now they are living the crap dream right now. Here. In America. Home of the incredibly cheap crap. Yea whatever.

Forget philosophy. You sound a little like the kid next door. His dad buys him an $80.00 pair of Nike shoes, and he trashes 'em in a month. "They're crap..." he told me when I noticed them sitting out on the porch in the rain.
(Nah, It's not that bad.)
He's young and does'nt really understand the meaning of a dollar, but he does know his incredibly cheap crap!

You're right. Americans can't compete with crap. We really should look for more products to outsource. Anything made here is WAAYYY too expensive. Why buy something made here when you can get 3 for 1 pricing at WAL-MART? Hey it's the American way... if it breaks, toss it and get a new one, no problemmo. Don't be a shmoe, just get mo. You're right as well when you concede that we make our own realities. Reality says: Americans like, and enjoy, the cheap crap.

Pfhhhh! Indeed... it does say alot. About you. If you want to live the cheap crap lifestyle, by all means, please oblige yourself, but speak only for yourself and don't delude yourself into thinking you speak for all of us.

THINK

675 posted on 05/27/2003 11:05:13 PM PDT by m18436572
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To: Billy_bob_bob
.....while being a detriment to those who used to make their livings providing said product or service.

Of course. Their is always pain in progress. Horse and buggy whip makers suffered it. Radio makers suffered it. American shoe makers suffered through it. One must take the good with the bad...... In this case, the good will be a much stronger economy with a higher standard of living, in the long run...

676 posted on 05/27/2003 11:07:10 PM PDT by Texaggie79 (pimps up, hoes down!)
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To: RaceBannon
I don't wish to sound harsh, but those jobs moving elsewhere has nothing to do with it. Sure, it is highly impactful on the individuals who are directly involved, however all that matters to the state of the economy is if less resources are utilized to achieve the same product and/or service.
677 posted on 05/27/2003 11:10:33 PM PDT by Texaggie79 (pimps up, hoes down!)
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To: m18436572
MMMM. Haven't heard that one in...... a day. Cheap crap huh? Can you provide a better quality? Do it. If the market wants more quality, you will make a killing. Do you realize how good we, as Americans, have it? Just about everyone I know and see pays for clothes where 60% or more of the price is simply for a name that is embroidered on it. Our market is FLOODED with very inexpensive groceries, yet we all buy the "NAME BRAND". People buy expensive cars just to put in their garage and say they have it.

m18, if we needed better quality in our crap, consumers would have no problem paying the extra $.

678 posted on 05/27/2003 11:19:38 PM PDT by Texaggie79 (pimps up, hoes down!)
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To: m18436572
Some americans like cheap crap, some do not. I am only grateful that cheap crap is an option for those who want it, instead of everyone having to pay a lot for things that are not important.

Sometimes I want the biggest, bloodiest porterhouse steak I can find, but once in a while, I only want 8 or 9 disgusting chill dogs from DerWienersnitzel, do you know what I mean?

We have in America the best of the best, and the worst of the worst, which is what happens when you have freedom. Yes, our society LOVES it's cheap crap, but we love our quality things too. Some of you can only seem to see the negative about our nation, instead of being thankful that you were not born elsewhere.

I dont understand that kind of thinking, and I hope I never do.
679 posted on 05/27/2003 11:21:28 PM PDT by Pukin Dog (Sans Reproache)
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To: Pukin Dog
Did'nt expect you to.
680 posted on 05/27/2003 11:23:32 PM PDT by m18436572
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