India outsourcers hiring staff as US demand grows.

[HughBeaumont]

Source: Yahoo.com

MUMBAI, India – India's top three outsourcing companies are ramping up hiring and increasing pay as global corporations, mainly from the U.S., send more work offshore to cut costs as they emerge from the downturn.

Tata Consultancy Services, Infosys, and Wipro expanded their global workforces by an average of 5.1 percent last quarter, together adding 16,701 employees, company documents show — an early sign that the Great Recession may ultimately benefit India as cost-conscious companies outsource more work, just as they did after the dot-com bust.

(snip)

He argues that the cost savings from offshoring has helped U.S. companies survive — and that's good for the American worker.

"You might say jobs in the U.S. are getting displaced by jobs in India, but because of the value provided by Indian companies and lower costs, there are firms who are able to keep their heads above water and continue to employ their existing employees," he said.



Read more: http://news.yahoo.com/s/ap/20100120/ap_on_bi_ge/as_india_outsourcing

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Some people laugh and even finger-wag when I say that Corporate America is sabotaging recovery. The middle/working/poor classes are not going to survive another decade under predatory unbridled corporatism.

[fasttense]

1. This is why NO NEW JOBS were created in the US in the last 10 years, n/t

[HughBeaumont]

2. White Collar offshoring joined blue collar offshoring about 12 years ago.

Since that time, the worker has really nowhere to go. The blue-collar worker is forced to go to college and get a degree . . . for nothing, because he's either on the same launch pad for years, or on the same unemployment line as the displaced white collar, thanks to the private sector laying off more workers than they're hiring.

America has no future if all we care about are enriching one class of people and their profits. We will NOT have a future in a set-up like this. What are our children going to do for a living? Has anyone ever thought about that?

[high density]

12. The corporations only care about next quarter

Nobody seems to stop to think that American workers can't buy all the crap they want to sell us if we don't make a decent salary. Instead it's about maximizing the profit for now and then I guess their business will follow the money offshore.

[boppers]

17. "NO NEW JOBS"?

I want what you're smoking.

Did you mean no new *net* job creation, or are you seriously arguing that no company has hired anybody in the US in the last 10 years?

[endless october]

3. it's time to tariff the shit out of corporations for outsourcing.

it's past time.

it has ruined our economy and has destroyed a large chunk of our middle class.

[evenso]

4. Hundreds of JP Morgan Chase jobs leave Florida for India

In December, hundreds of customer services positions were transferred to India. What are we supposed to do?

[quabbin]

5. Free Trade=Middle Class Extinction

When are Americans going to wake up to this growing debacle? Why hasn't this become a national scandal? It's not rocket science. Force your workers to compete with cheap third world labor and they will eventually have a standard of living on par with said third world workers. Outsourcing has made an economic colossus out of China. How is that in our economic and national security best interests? I'm a longtime MA resident and as you can imagine I'm not really happy this morning.

[ccinamon]

6. He's wrong...

"You might say jobs in the U.S. are getting displaced by jobs in India, but because of the value provided by Indian companies and lower costs, there are firms who are able to keep their heads above water and continue to employ their existing employees," he said.

There is plenty of money to keep and hire employees if upper management and the board of directors weren't greedy and wanted all the money for themselves. They don't need 10s of millions to hundreds of millions of dollars in salary and bonuses every year. Greed is what is running corporate America, and it will be the downfall of America.

I'm doing everything possible to try and get my kids to start their own business now....I don't see how American culture is going to survive the next 25 years with attitudes that currently exist in corporate America.

[BadgerKid]

7. Problem is, ridiculous building codes can nag small biz.

I've recently been seeing this third-hand.

[HughBeaumont]

8. Anyone who has the elephant BALLS to make a comment like this . . .

. . . especially during a "Great Recession" that, by and large, was partially aided and abetted by the job exodus to cheaper shores, needs kicked for insensitivity alone.

Greed is a country-killing CANCER.

[pscot]

9. +1000

It's past time to slap a major tax penalty on bonuses.

[ChromeFoundry]

18. I'd like to see them slapped, majorly...

just for starters.

When they have completely sold-out the citizens of the country that has allowed them to earn their wealth; I will feel no pity for the consequence that they will be confronted with.

[amandabeech]

14. Don't forget the greedy shareholders.

Expecting a 20% return every year will demolish any organization. Six to 8% used to be the norm.

Really, going private and financing from earnings and bank loans is the way to go. Once you get involved with investors, all is lost in today's climate.

[rox63]

10. This is why I am training to get out of the IT field

Too many jobs in IT have gone and are going overseas. I'm switching over to health care, which is harder to outsource. It's tough going back to school in my mid-40's. But I would like to stay employed until I am ready to retire, if I can ever afford to retire.

[boppers]

19. I'm in IT, too. The IT/healthcare field is going gonzo.

If you can combine the two, you're golden for at least 5-10 years... everything from DB work in medical records management to workstations at patient bedsides, much of the field is basically still in the dark ages of using *paper* to document things. It's like (and I'm dating myself here) going to accountant offices in the early 80's.

[blue97keet]

11. If the Dem leadership was really serious about getting populist

anger on their side, instead of on the tea-bagger side, they would go after offshoring practices and the destruction of our industry with a vengance. Of course they are to cowardly or stupid or politically correct or corrupt or whatever to address structural problems with the economy.

[avaistheone1]

13. Democrats are going to keep losing elections like we did in Massachusetts yesterday

until our Democratic leadership stops the bleeding caused by offshoring and free-trade. We can't wait much longer.

[OhioChick]

15. Meanwhile....

US tech sector job cuts highest since 2005
19 Jan 2010

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=4231694

[ihavenobias]

16. Ouch. n/t

[Quantess]

20. Terrible for us.

[paulflorez]

21. H-1B Visas

If you've never heard of an H-1B Visa, look it up:
http://en.wikipedia.org/wiki/H-1B_visa

I believe Tata, Infosys and Wipro are some of the largest holders of H-1B Visas.

What they do is setup their HQ outside of the U.S., grab as many H-1B Visas as they can, find non-U.S. employees to hire, then contract them out to U.S. companies.

I've worked with H-1B Visa employees before. They have very good experience, but relatively they get paid crap. The contractor will charge a U.S. company $50 - $80 an hour and pay the H-1B employee $30 or so an hour, pocketing the rest. I knew software engineers from Mexico with around 10 years experience, where the U.S. company was getting charged $40 - $50 an hour and the H-1B employee was getting $15 an hour. You could earn $15 an hour working at a grocery store after that many years, and these are educated software engineers. What's worse is they were more than happy to earn that much and work long, hard hours for it, because compared to what they make in their home country it is a lot more money.

Even with all the layoffs in 2009, H-1B visas were STILL being handed out, although unlike in 2000 - 2007 they didn't completely run out of visas, at least the last time I checked. Why didn't they suspend the H-1B Visa program???

[One_Life_To_Give]

22. Can Goldman-Sachs obe outsourced?

Why pay million dollar bonuses when a Hedge Fund manager in India will do it for $20/hr

[OhioChick]

23. Good point. n/t