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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: Texaggie79
MMMM uh yea you're right about the buggy whips, but last I checked, people were still buying radios and shoes. Go ahead and buy the crap, I'm not telling anyone what to buy. Pay what you want, but selling a $10.00 pair of shoes for $120.00 sounds funny to me.
681 posted on 05/27/2003 11:33:44 PM PDT by m18436572
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To: nutmeg
.
682 posted on 05/27/2003 11:34:25 PM PDT by nutmeg (USA: Land of the Free - Thanks to the Brave)
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To: m18436572
Oh yea, It's the capitalism. Duh
683 posted on 05/27/2003 11:37:07 PM PDT by m18436572
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To: m18436572
Do you know how much a pair of shoes would cost had the american shoe workers gotten to keep their jobs and paid the salaries and benefits they demanded? Around about $300 a pair....
684 posted on 05/27/2003 11:56:32 PM PDT by Texaggie79 (pimps up, hoes down!)
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To: m18436572
So instead, you want the govenment to force people to make domestically made crap instead. What a novel approach.
685 posted on 05/28/2003 12:07:34 AM PDT by Dat
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To: TaxRelief
You're right; I'd change it:The most powerful miltary power in the world by far going facist. => going facist, or communist, or theocratic, or insert nondemocratic system here.

When there was great social disparity, loss of faith in democracy, and some bunch of nuts with a crazy idea, bad things have happened. Look at Germany, Italy, and Russia. All of them had democracies (yes even the russians for a very short time) that fell. Germany could have just as well have gone communist as nazi; actually national-socialist name was to get the left on board.

My point is that a democratic government cann't afford to fail it's people economically.

As far as goverment revenue being the only difference between left and right. Are Bush and suply side economists who say decreasing taxes will increase government revenue all on the left? I have general questions to try to find out which way people are leaning:

1) Do you believe in increasing goverment power vs. rights of citizens?

2) Do you favor more regualtion and envolvement in industry.

Commi: YES,YES

Facist: YES, no

Libertarian: NO, NO

Me personally: NO, it depends....

686 posted on 05/28/2003 2:08:29 AM PDT by Lefty-NiceGuy
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To: Jorge
...and since you brought up jet aircraft.... Boeing wants to sell airliners to China. China says they'll buy Boeing but Boeing will have to build them in China using Chinese labor. Then, of course, after Boeing teaches the Chinese how to build airliners, and hands the tyrants every technological skill necessary, they simply give us the finger and manufacture without U.S. involvement.

We aren't just exporting jobs, we are exporting all of the technology so that foreigners have no reason to buy anything American. This is a textbook for absolute stupidity and the destruction of our own country. It's irrational, American business suicide.

The United States government should shut down such predatory nonsense. They should tell China, "You don't get access to our markets unless American companies, building American products, made by Americans, can sell in China.... PERIOD"

687 posted on 05/28/2003 3:00:05 AM PDT by NoControllingLegalAuthority
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To: LibertarianInExile
Very well said!!
688 posted on 05/28/2003 3:00:34 AM PDT by NoControllingLegalAuthority
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To: SERE_DOC
I sure hope you forgot the sarcasm tag, and really don't believe that.

I was assuming that a Barbra Streisand/Tom Daschle-like quote wouldn't require the sarcasm tag on FR. It wasn't like it was subtle or something. :->

689 posted on 05/28/2003 3:06:50 AM PDT by Huber (IT Workers of the World, Unite! You have nothing to lose but your chains.)
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To: Lessismore
For the 2048th time. Time for immigration reform!

Tancredo for President!
690 posted on 05/28/2003 3:09:20 AM PDT by jehosophat
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To: hedgetrimmer
Nice point about policies booting companies (or parts of them) offshore. Sometimes though, it makes sense to think of them sucking companies over there if you agree with the policy in question. Child labor, near slavery, dangerous working conditions, and no respect for the enviroment -- you can find all those things just south of the Rio Grand. It's up to us to say what we think is fair competition and not trade with those guys if need be. It's our free and fair perogative as a nation.

That gets you to the next problem you point out. Sometimes it seems special interests seem to own those Feinsteins in our govt. What is it going to take to boot out all those crooks? Judging by the behavior of our government we believe trade is free and fair based on who lobbies better.

If a big lobby doesn't want to loose buisness to foriegn competition -- no trade deal.
If a big lobby want's to do buisness overseas -- trade deal.

The same guys that preach free trade one day, put up tariffs and subsidise their buddies the next day. Companies tend to lobby better than people, so it's no wonder that this hypocracy favors companies at the expense of the American people. Who lobbies for "fairness" for the American worker and consumer? Unions? Yeah right(sarcasm)! This where democracy is supposed to kick in with a little "tyrany of the masses", but I won't hold my breath.
691 posted on 05/28/2003 3:29:58 AM PDT by Lefty-NiceGuy
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To: Texaggie79
The inexhorable pressure of any business is to lower costs and labor (for that matter, the higher cost of labor in the developed world) is a very considerable cost.

Corporations are run by bureaucrats, not iron jawed Ayn Rand ubermensch. Bureaucrats are rewarded for increasing shareholder equity. In a time when profits are pressured, the best, and indeed only, way of increasing shareholder equity is by slashing costs. Mass layoffs and outsourcing mean a good quarter. So yes, there most definitely is an agenda to reduce the American standard of living (and throughout the industrialized world) to Third World levels.

To the extent that you imagine that you can somehow individually outsmart national net downwards social mobility, which is what globalism means, you are simply deluding yourself that you can win a rigged game. The downside of positive mental attitude is failing to realize when you are hopelessly outmatched by the powers that be and only by organizing to fight back do you have a chance.

After 10 more years of this, how long do you think America will continue to be a great power ?

692 posted on 05/28/2003 4:02:33 AM PDT by Tokhtamish
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To: Lefty-NiceGuy

Welcome to the
Outsourced IT Workers'
Therapy Group!

Come on in, let's discuss your fears!
How do you FEEL about the trauma of globalization.
CMM too constraining? Not up for change?
Don't worry someone here will listen to YOU.


693 posted on 05/28/2003 4:11:22 AM PDT by TaxRelief (Move along, Freepers; no patient observation allowed.)
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To: frosty snowman; LibertarianInExile; RaceBannon
A protectionist, pro war third party could clean Bush's clock. The political system is ripe for another Perot insurgency.

Jorge, positive mental attitude is wonderful. But at some point you have to face the fact that you are playing a game that is rigged against you and your country. You have to drop the wishful thinking and organize to fight back.
694 posted on 05/28/2003 4:22:22 AM PDT by Tokhtamish
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Comment #695 Removed by Moderator

Comment #696 Removed by Moderator

To: RaceBannon
Re your post 117

So sorry to hear of your misfortune. In the game of winners and losers, it seems too many good people are losing and some of those that are "winning" (as we see on this forum) are heartless and arrogant.

697 posted on 05/28/2003 4:46:04 AM PDT by EverOnward
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Comment #698 Removed by Moderator

To: RaceBannon
re your post 199

excellent article. Question: What can we do to change what is happening?

699 posted on 05/28/2003 5:07:16 AM PDT by EverOnward
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To: Billy_bob_bob
Is there a point when nations and multi-national corporations cannot co-exist? If, in fact, there is a point where one must prevail over the other, then I submit that it is very much in our interests as citizens and human beings to ensure that nations and national rule of law prevail over multi-national corporations.

I submit you're 100% right. The goverment gives companies charters, and they do it in our name, and "we the people" may put conditions on those companies to protect our democratic way of life. Conserve our constitution rights and the soveriegnty of our democratic nation first, then optimise bussiness laws to the situation.

Ok, but now half the guys here are going to call us commis. Screw em, this maybe this is the real "conservative" viewpoint. Nice job "studying the works of Adam Smith, Ludwig Von Mises, Hernando De Soto and the founding fathers." Seems you're one of the few here that knows what he's talking about.

700 posted on 05/28/2003 5:10:34 AM PDT by Lefty-NiceGuy
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