U.S. jobs: Next stop, India?

[LynneSin]

http://news.mysanantonio.com/story.cfm?xla=saen&xlb=110&xlc=1057140

U.S. jobs: Next stop, India?

By Sanford Nowlin and Travis E. Poling
Express-News Business Writers

Web Posted : 09/21/2003 12:00 AM

When Paul Olivares took a job at USAA's information technology department 14 years ago, he thought he might stay with the company until retirement.

Paul Olivares is considering switching professions to pursue his love of music after he had to leave his job in USAA's information technology department. The company has been giving more work to Indian contractors who will work for much less money.
Nicole Fruge/Express-News

But his hope for that faded as the insurance giant began a series of layoffs in 2001 that slashed hundreds of jobs, then imported scores of foreign contractors to work in its information technology subsidiary, ITCO.

USAA, like many other major corporations, outsourced part of its IT workload to Mumbai, India-based Tata Consulting Services, which supplies staff that some estimate are working for less than half what USAA workers earn

<<<<snip>>>>>

Tata, which bills itself as one of the world's largest IT consulting groups, has $1 billion in annual revenue, the majority coming from U.S. clients.

The company has more than 50 U.S. offices, and its customers include not only USAA, but SBC, Best Buy, three state governments and the U.S. Department of Defense

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Folks here is where your job might be going!!! Our fathers & mothers lost their to cheap foreign labor now it's their children's turn:

http://www.tcs.com/

[uptohere]

1. old news

my job went there two years ago and it all started in 1998. Before that for Microsoft and a few others.

[Richardo]

2. This is the true domino theory - jobs will continue to migrate

...to the lowest cost labor source. We see it happening now:

US-Mexico-China-India

Mexico is already seeing the flight of maquiladoras to lower cost labor. Wonder what THEY think of the promise of NAFTA now?

After India's workforce get too expensive, there's always Central Asia (Afghanistan, the "new" Iraq), sub-Saharan Africa and Central Africa.

[w13rd0]

3. I hear discussion of this over and over...

...at client locations. Business after business is discussing this. Small and medium sized businesses. It's a topic of discussion at cooperative IT conferences in regard to how to fight having our skill sets shopped for overseas...

Not good at all. It is unpatriotic to shaft US workers to pad ones pockets...

[Melsky]

4. It's a short sighted solution

Do they think Americans will have any money to buy their products and services after we all lose our jobs?

[Don_G]

5. What Do They Care

The Rethugs want theirs here and now; never mind the future.

[Township75]

8. I agree. This will only work for a few companies...

if no other companies do it. Once all the companies lay off every American worker, they will have essentially destroyed their largest market (i.e. the US economy).

So what happens then? Does the US become the new cheap market? Industrial revolution style work all over again.

[area51]

6. Related issue

Here are a couple of websites on a related issue of Americans losing jobs.


H-1Bs


Zazona

[Another Bill C.]

7. Senator Norm Coleman,

while he was mayor of St. Paul, talked the city into laying out a lot of money to bring Lawson Software and its jobs to St. Paul. Now they're laying off their software engineers and contracting with India. It won't be long and the city will be left holding a great big bag.

[pbeal]

11. it's already holding the bag

If it wasnt for the restaurants St Paul would be a ghost town

[Yupster]

9. Biggest economic issue in the US today

We've been out of a recession for two years now, and there's no net job growth. Our economic GDP numbers right now are truly excellent and there's no net job growth. This is why.

And it's going to get worse as there are some new announcements coming.

A brokerage firm may charge .88 of 1 % as a management fee on a mutual fund. That little amount must pay for the fund and provide the firm a profit. If it can push its cost from .75 of 1% to .65 by moving its phone banks to the Philippines, it will double its profit.

I think everyone agrees what a big problem this has become. I think the cause of it is the internet which allows information to go around the world in a scond, but what I'm not hearing are solutions. Usually when I mention the subject on DU, the answer is either "Elect ___ and the problem will be solved," or "Fire Bush and the problem will be solved."

[ClintonTyree]

10. But the Repugs say..............

that "the wealth still stays in America, therfore it's OK". Yeah, it stays in America, right in the top 1%'s pockets. The same people who benefit MOST from Bush's tax cuts. The same people that pay no corporate taxes. The same people who............you get the idea. This country is fucked, and it's because of the "1%". Eat the fucking rich.

[Yupster]

12. If nothing is done

basic economics will work this out for itself in a few years.

Our workers standard of living and pay will come down and India's will come up until they meet.

Then there will be no advantage in shipping jobs overseas.

That's a meeting I'd rather not see though.