26,889 More Jobs Offshored

[paineinthearse]

26,889 More Jobs Offshored

A total of 46 new companies have been added to the Offshore Tracker this month, resulting in 26,889 jobs moved offshore and 11,787 U.S. jobs lost. The leading culprits are IBM, adding more than 3,000 positions to its offshore locations, bringing its total to 15,000; and Delphi with 6,800 engineers in India, China, Mexico and Poland—40% of its engineering department. American Express eliminated 2,000 U.S. jobs and intends to offshore at least 400 of the lost positions.

Over the past year customer complaints to Dell prompted the company to move some of its call center positions from its offshore Indian location. However, the jobs are not returning to U.S. soil. Instead the company has shifted focus to Canada. This month the company hired 750 employees to staff its new call center in Edmonton. In addition Dell is opening customer service offices in Halifax, Montreal, Ottawa, Toronto, and Vancouver.

“Nearshoring” is not a new concept to companies like Dell, however tax credits and loans offered by nearshore destinations make it popular for more than just language proficiency and travel costs. Canada is offering large tax credits and loans to companies that set up research and development or design centers within its borders. As reported in the San Jose Business Journal, the federal and provincial governments in Canada work together to offer a credit of up to 57% against labor costs in R&D. In addition to an R&D tax credit, the Canadian government also offers loans of up to $5 million to cover the cost of developing a new product using Canadian workers.

Get the Details at the TechsUnite Offshore Tracker - http://www.techsunite.org/offshore/

[EVDebs]

1. Paine, good to hear from you again ! Another gem of news, huh ?

Globalization is ruining the country and even Lou Dobbs' reporting doesn't get though to these guys. As nutty on many topics as he is, Pat Buchanan's excellent article "Suicide By Free Trade" should be required reading by DUers.

From what I'm getting, Bush may try some kind of 'guest worker' thing. The best way to combat that is to (and I'm serious now) legalize the illegal immigrants ASAP and get them rights as US citizens ASAP...then go for simultaneously Living Wage laws along with single payer healthcare. To be paid for by a surtax on Corporations (as Dobbs suggests a $10,000 fine for each instance of hiring an illegal or displacing a US citizen with a H1B or L1 visa) and Warren Buffett, who wants corporate taxes raised to pay for these rising social costs caused by globalizing corporations who shed US jobs in order to jack up CEO pay and offshore profits...to outsource more jobs and ...well, the cycle goes on.

And now the CIA is acknowledging that outsourcing is a threat to the US's middle class (what's left of it !):

""The report, from the Central Intelligence Agency's National Intelligence Council, is the first in its series to specifically mention outsourcing and to link it directly to the changing global landscape. The report also warns that outsourcing's growing role in globalization is detrimental to the middle classes in Western nations."
http://www.cnn.com/2005/US/01/28/world.outsourcing/index.html



Warren Buffett Urges Higher Corporate Taxes
http://www.commondreams.org/headlines04/0306-01.htm

Suicide by Free Trade
http://www.amconmag.com/2004_04_12/buchanan.html

[paineinthearse]

2. Hey dere!!! LTNS

I've been here a while, "shelter from the storm" and all that. Good to see you!

[DaedelusNemo]

3. Heh, how about funding unemployment benefits out of capital gains?

So the more unemployment there is, the higher the capital gains tax will be. Since so much of this unemployment is happening for the benefit of investors, let's shift that cost right back to them. And hey - it gives motivation for fixing (or reducing) the problem to those most capable of doing so.