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This page was last updated 07/16/09

 

As you read the information please remain mindful that in the USA today we have a serious unemployment problem. A problem unique to any era in our nation since these are not merely jobs lost in transition, nor due to hard times that will be temporary -- these job losses are PERMANENT!

Americans today are worried that we would be attacked with WMD, yet our corporations have managed through greed to place the USA in a situation where we can be held hostage by a third world nation.

Americans worry that we will be nuked, when all India, or China need do is unplug us.

You may respond that these same nations will also suffer the loss of resources, but I ask you -- given the history of the citizens of the nations in question which citizens will survive? Which citizens have a history of doing without -- suffering and surviving hardship?

The answer not only gives me pause, but also makes me shudder.

Globalization News and Commentary
(source)

Off-Shoring and Outsourcing to India

Fight back against anti-competitive corporate mergers, unfettered free trade, downsizing, declining wages and corporate greed!

IBM plans to move jobs from the US to India & elsewhere Senior executives at IBM told subordinates that it planned to move jobs overseas to India and other countries.

The appropriately named Tom Lynch, IBM's Director of Global Employee Relations, said in a conference call that "Our competitors are doing it and we have to do it." Lynch also told staffers that he was aware that US politicians are feeling the heat from their constituents, and that there is a growing backlash against the trend by companies to move jobs overseas for low-cost labor. "It's hard for me to imagine any country just sitting back and letting jobs go offshore without raising some level of concern and investigation", Lynch said in the conference call.

A digital copy of the conference call was made available by an patriotic IBM employee to the Washington Alliance of Technology Workers, which in turn provided a copy to the New York Times.

The Times article reports that "IBM executives also warned that when workers from China come to the United States to learn to do technology jobs now being done here, some American employees might grow enraged about being forced to train the foreign workers who might ultimately take away their jobs." [New York Times, 7/22/03, pages C1, C2]

Corporations moving jobs to India

Corporations are moving literally millions of jobs to India, where workers make a fraction of what their counterparts make in the US or Europe.

From the New York Times [8/11/02]: "If you lose your luggage on British Airways, the techies who track it down are here in India. If your Dell computer has a problem, the techie who walks you through it is in Bangalore, India's Silicon Valley.

Ernst & Young may be doing your company's tax returns here with Indian accountants. Indian software giants in Bangalore, like Wipro, Infosys and MindTree, now manage back-room operations --- accounting, inventory management, billing, accounts receivable, payrolls, credit card approvals --- for global firms like Nortel Networks, Reebok, Sony, American Express, HSBC and GE Capital. ... GE's biggest research center outside the US is in Bangalore, with 1,700 Indian engineers and scientists. The brain chip for every Nokia cell phone is designed in Bangalore. Renting a car from Avis online? It's managed here." [Thomas L. Friedman, New York Times, 8/11/02, Sect 4, page 13]

"New Jersey's welfare department was surprised to learn earlier this year that when their welfare recipients called with a question, they were speaking to an e-Funds call center in India." [New York Daily News, 1/20/03, page 26]

It is immensely profitable for companies to close customer service centers in the United States and Europe, and move them to India, where the workers are paid about $2,400 US per year. The customer service reps don't tell their American callers that they are really located in India. "Companies that outsource to India would prefer to keep that under wraps", reports S. Mitra Kalita in Newsday [7/15/01, pages F1, F6-F7].

Customer service reps in India are often "...told to pick an American name such as John or Rose, instead of their real names like Jeetendra or Radha. Javanti becomes Jessie and Sunaina becomes Daniella. 'They have to have a name the customer is familiar with,' says Prakash Gurbaxani, founder of 24/7 Customer.com, a customer service center in Bangalore." [New York Daily News, 1/20/03, page 26]

Computer programmers are being laid off by the thousands in the United States and Europe with the work being moved to India. Programmers in India are paid about $5,000 US per year, and receive almost no benefits. Comparable programmers in the United States earn at least $50,000 US per year. According to Clive Thompson in Newsday, "database giant Oracle has announced that it would be investing $50 million to expand its Indian offices."

He also reported that Hewlett Packard is boosting its staff in India from 1,500 to 5,000. As Mr. Thompson so eloquently stated, "Eventually the United States won't make any hard goods, won't do the cerebral stuff and won't fulfill the orders. Then, what's left? Brand building? Business development? Shopping? Would you like fries with that, sir?" [Newsday, 7/15/01, page B15]

"Call centers ... are a $100 billion business, according to Price Waterhouse Coopers, and much of that is going abroad. Companies like GE, Oracle, British Airways, Conseco, IBM, McKinsey, Ford, Citigroup and Microsoft are outsourcing thousands of US jobs to India, attracted by an educated workforce with 250 million English speakers and lower costs." [New York Daily News, 1/20/03, page 26]

Delta Air Lines will outsource some of its reservations services to a company called Wipro in India. The relocation of these jobs will reportedly save Delta $12 million to $15 million annually. [New York Times, 12/25/02, pages W1, W7]

Lehman Brothers has a $70 million/year contract with two Indian companies, Tata Consultancy Services and Wipro. Tata also has contracts with J.P. Morgan Chase, Fidelity Investments and GE Medical Systems. [New York Times, 12/25/02, pages W1, W7]

Microsoft has a development center in Hyderabad, India, and also out sources some work to Indian firm Wipro.

Microsoft Chairman Bill Gates visited India in November 2002, and told the media "A couple of years ago, the biggest American corporations would have considered it risky to outsource mission-critical work to India, but it is now becoming a common sense proposition." [Microsoft Chairman Bill Gates quoted in the New York Times, 12/25/02, pages W1, W7]

"The local [Indian] unit of Cognizant Technology Solutions, a custom software developer, ... has contracts for projects from MetLife, to upgrade its human resources administration system and streamline some computer applications, and from the United Health Group and Sallie Mae, the student loan provider." [New York Times, 12/25/02, pages W1, W7]

Wipro, in India, writes software that runs in all Home Depot outlets in the United States. [New York Times, 12/25/02, pages W1, W7]

"General Electric Information Services, which offers consumer credit cards for retailers like J.C. Penney and Lowe's, now has 3,000 call center employees in the US and 10,000 in India." [New York Daily News, 1/20/03, page 26]

India's government is totally corrupt

Another reason why I suspect many corporations are moving operations to India: It is "one of the most corrupt countries in the world", according to a recent article in the Financial Times.

The article states that "An estimated 20 percent of the 545 members of the lower house of parliament have criminal backgrounds, ranging from graft to murder.

There are even more criminals in state assemblies, particularly in the most populous states of Uttar Pradesh and Bihar." Inder Malhotra, a political analyst in New Delhi, is quoted as saying that "The Indian system of government is becoming like the Cosa Nostra." [Financial Times, 8/8/02, page 12]

More companies outsource computer jobs overseas, creating security risks. More American companies are outsourcing programming jobs overseas, raising concerns about computer security.

According to the New York Times, "Forrester Research of Cambridge, Mass, predicted in a recent report that the acceleration in outsourcing would result in 3.3 million American jobs moving offshore by 2015...". The Forrester report estimated that "70 percent of these jobs will move to India, 20 percent to the Philippines and 10% to China."

The Chief Technology Officer of Intel, Patrick P. Gelsinger, told the Times that the salary of one American engineer could pay for 3 engineers in India, 4 engineers in China, or 5 engineers in Russia.

American programmers are warning that farming out jobs overseas puts business computer systems at risk. Ken O'Neill, a Long Island computer programmer, told the Times that "Anyone who tells you that 'offshoring' computer systems does not put the infrastructure at risk is lying."

The Times article goes on to report that Mr. O'Neill and other programmers "talk of 'sleeper bugs' that could be set to go off at a later date, or back doors that would let intruders in to shuttle money around, steal fractions of a penny from millions of transactions or shut down the system entirely. They warn of risks from political instability, organized crime and terror cells, and even from governments that might demand the ability to spy."

The American programmers interviewed by the Times also say that reviews by companies of the computer code drafted by foreigners isn't as complete as the corporations claim. The Times article reports that one programmer stated: "If code runs, I assure you, nobody looks at it", comparing a line-by-line review of computer code with the likelihood that an electrician would tear into walls to check wiring even though the lights were working. "It never gets done in practice", he said. [New York Times, 1/6/03, pages C1, C4]

US Tax Returns processed in India. You pay your CPA hundreds of dollars. He sends your data to India!

According to the New York Post, "The accounting industry has begun using the growing Indian outsourcing and technology markets to process American clients' returns. In some cases, the work is replacing tasks of US accountants. So information like your salary, your bank and brokerage statements, credit card information, and anything else you might be submitting as part of your tax return could be going to companies abroad without your knowledge." [New York Post, 4/7/03, page 34].

The article quotes an accounting industry consultant as estimating that between 25,000 and 45,000 tax returns will be have been processed in India this tax season.

Financial Times sponsors "Outsourcing to India"

The last thing workers in the US and western Europe need is a major financial newspaper sponsoring a conference which encourages companies to relocate jobs to India.

But that's exactly what the Financial Times is doing. The program announcement [Financial Times, 1/3/03, page 6] proclaims that "India has been on the frontline of global outsourcing for a decade and roughly half of the world's largest 500 companies and many government agencies now contract out IT and business process work to India." The Financial Times website for the conference states that "offshore outsourcing of IT and business services is on course to become the fastest growing segment of the IT market in the next five years."

The conference was held in London on January 28, 2003. Speakers scheduled to appear included officials from the government of India, as well as executives from the following companies:

Standard Chartered Bank
GE Capital [a unit of General Electric]
Accenture
Deutsche Bank
HCA
Deloitte Touche
WNS UK
McKinsey & Company
Citigroup
Wipro Technologies
BT Group Plc

On January 15th, I called FT's Managing Director Olivier Fleurot for a comment. He didn't take my call, but I did receive a call-back from Louise Hunter, the Director of Conferences for Financial Times.

I described the economic depression that American and British workers are living with, and reminded her that her own newspaper has expressed serious concerns about the health of the economy. Ms. Hunter defended the conference on the basis that outsourcing to India is a subject of interest to many corporations, and assured me that the Financial Times would never organize a conference that they were not "ethically comfortable" with.

Municipalities in the US are buying manhole covers from India.

Increasingly, municipalities all over the United States are buying their manhole covers, sewer grates, water meters, and other castings from India. They can buy these items from Indian foundries at 1/3 the cost US manufacturers charge for the same work. Even with the higher shipping costs, the Indian foundries save on labor costs. In the meanwhile, foundries in the US are closing.

Indian foundry workers make between $1 and $3 per day, depending upon the duties of the worker and the foundry for which he works. R.B. Agarwalla in Calcutta, India, has a $2 million per year contract with the City of New York to manufacture manhole covers. They pay their workers $1 per day for 8 hours work. In photographs published by Newsday, the Indian foundry workers wore absolutely no safety equipment.

Many American foundries are going out of business, not only because of competition from India, but also because of imports from China, Mexico and Brazil.

A law passed in 1984 requires that the nation of origin be stamped on the casting, which is why we are seeing so many manhole covers marked "MADE IN INDIA" or simply "INDIA". Foundries in India opposed the law, unsuccessfully. B.N. Agarwal, senior partner of R.B. Agarwalla --- the Indian company which manufactures manhole covers for the City of New York --- told Newsday that the law is "absurd". "As long as it is a good product and the customers are happy, why do you want to show it as made in India?", he asks. [Newsday, 1/20/03, pages A25, A30, A31]

Bank of America moving computer tech jobs to India

From the Charlotte Observer: "Bank of America Corp. plans to cut technology and operations jobs through the end of 2003 and, in the process, replace some employees with lower-cost labor overseas.

The bank is sending to India software programming that is now done in-house. Some employees say that they are worried about their future and are upset that foreign firms are taking their jobs.

"Laid-off employees said they have been asked to sign two sets of papers: One states that the employee will receive two weeks' severance for every year he or she worked for the bank. The other says severance will be canceled if the employees talk to the media or quit before a certain date. They've also been asked to help train their Indian counterparts before their final day.

"The days of being a developer at Bank of America are numbered,' said a programmer worried about supporting a wife and children. ... Another technology and operations employee is angry that a bank with a red, white and blue logo is taking jobs away from Americans by outsourcing to foreign companies."

The Charlotte Observer article also reports that "A recent survey of Fortune 1000 chief information officers showed that the number of companies outsourcing more than 3 percent of their information technology budget to India increased to 62 percent in 2001 from 32 percent in 2000." [The Charlotte Observer, posted to their website on 10/22/02 at: http://www.charlotte.com/html While viewing this link, use the BACK button on your browser to return to this page

Indian corporation sold chemical weapons materials to Iraq NEC Engineering Private Ltd. sold nearly $800,000 of highly specialized equipment to Iraq between September 1998 and February 2001, which could be used to manufacture chemical weapons and propellants for long-range rockets.

According to US and British intelligence reports, and reported by The Los Angeles Times, the equipment and supplies included aluminum powder and titanium centrifugal pumps. They were traced to destinations in Iraq.

According to The Los Angeles Times, "India has suspended NEC's export license, revoked passports of senior company officials and raided company offices and homes. NEC's general manager, who was jailed for four months last fall, has detailed the elaborate scheme to investigators. Further criminal charges are expected." The article reported that even if Iraq didn't use the equipment or supplies, it is a violation of UN Security Council resolutions just to acquire them. [Newsday, 1/19/03, page A7]

When companies can't outsource to India, they bring Indian workers to the United States on work visas Technical workers have been hardest hit by the H-1b visa program in the past, but corporations are now targeting other occupations! There is no American worker that is safe from this form of job displacement! Not every business can outsource to India.

For instance, hospitals can't ship patients to India for their healthcare needs. However, nurses are being imported from India to the United States on special visas, as a result of claims by hospitals that there is a "shortage".

According to Newsday, "Prompted by a growing shortage of nurses in the U.S., ATC Healthcare Services said ... that it has contracted with a company that will recruit, train and bring nurses to this country from India." [Newsday, 8/7/02, page A45]

It must be emphasized that there wouldn't be a shortage of nurses if hospitals paid them a decent salary, without burdening them with an oppressive workload!

As indicated on the gnp.org 'Quality of Life' page, a study by the University of Pennsylvania found that oppressive workloads are causing registered nurses to flee careers in hospitals, adversely affecting patient care.

According to Linda Aiken, the lead researcher for the study which appeared in the Journal of the American Medical Association, analyzed "unrealistic caseloads and job dissatisfaction and how these issues are having an impact on patients." [Newsday, 10/23/02, page A18]

Pak adds:

Nurses have always been overworked and underpaid. However, we had a voice in how the patient was treated. Nurses are with patients 8-12 hours a day. A physician spends 2.3 minutes with a patient. The nurse as the patient advocate stood as an obstacle to the corporate agenda, of the bottom line coming before the patient.

Nurses left and are leaving the medical field due to their frustrations at not being able to perform their job according to their ethical standards. Nurses will skip breaks and not take lunch if their patient care demands they remain on the job.

Nurses many of them continue their education and have academic loads to carry, striving to keep up with the cutting edge technology and medical breakthroughs. A nurse can go on vacation for two weeks and return with several new drugs to administer.

Nurses have families who are profoundly affected by the nurse's schedule, missed holidays and birthdays. The families also deal with nurses' emotions and psycho dynamics associated with working so intimately with humans.

The nurse is the pivotal professional when it comes to patient care. The nurses makes sure the doctor addresses the main issues related to the patient's care. However, there are many entities to each individual and nurses as the primary care giver treats her patient, as a WHOLE being. Body, mind spirit.

When hospital alliances began, the nurses were the first to go. Replaced with kitchen and laundry staff who were trained for eight weeks, to take over the nursing duties of assessing vitals signs, phlebotomy and ancillary duties. The reason the nurses were being removed through attrition was again due to the bottom line.

The nurses high end salaries at the time were approximately $30,000/annually. The kitchen and laundry staff could be paid half that, and yet the CEOs continued to make their high six figure and seven figure incomes, along with cushy perks.

Some believe that the act  of destroying nursing and medicine was purposeful. Some believe the greed so heinous that the removal of nurses was not due to incompetence and downright stupidity of the finance department and administration, but rather was due to greed in that there was more money to be made with people being sicker and by controlling the costs and consent to treat based upon pharmaco-economics analyses along with critical pathways which treat the disease/diagnosis not the patient.

The result of this decision to make medicine a business has been a dismal failure and any good business person would abandon such an endeavor, unless THEY are the ones making the money.

The people who believe the nefarious agenda claim the 'proof is in the pudding' -- with epidemic medical mistakes, complications resulting in increased length of stays (LOS) as well as epidemic law suits. Infections that have to be treated for longer periods of time. More people injured results in the need to spend monies to rehabilitate, to re train,  paying staff and other monies to cover a life time of healthcare costs. The funeral and cemetery industry making a fortune as well.

Medical and nursing studies have identified that medical mistakes -- complications -- infections -- falls -- medication errors have been directly connected to the nurse patient staffing ratios.

The idea of implementing tort reform to remedy the health care crisis is to advise us the goal is not to stop making mistakes -- but rather to place caps on compensation -- continue making mistakes and pay less when mistakes are made.

When do we address the increase in devastated lives and a growing stack of dead bodies?

If you think bringing in foreign workers to remedy the problem is the solution then more lives will be lost.

The choice remains OURS -- YOURS.

When do patients, families, workers and consumers just say NO?

It is not too late.

The life you save may be your own.

Come to think of it, if healthcare is a business, then as the consumers

We the People Have the Power!

 

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