Wednesday, January 11, 2012

Why IT is perfect for offshoring/inshoring

I don't think I could invent any type of work that is more perfect for
offshoring/inshoring than IT.

1) Unlike manufacturing, you don't have to mess with physical inventory. This is
huge. Shipping costs, and other supply chain costs, can be very substantial.
With IT, everything is done over the internet. Perfect for offshoring.

2) Unlike manufacturing, you don't have to worry about special plants, or
special equipment, special environmental regulations, or worker safety issues.
Just use ordinary computers, and ordinary office space. Dealing with foreign
regulations for building permits, and the like can be a nightmare. With IT, you
don't have to bother with any that. Just rent space in an existing building.
Even if you build your own building, you don't have to bother with all the
special issues that go with manufacturing.

3) Unlike health care, or other fields, you don't have to bother with sort of
special education, or licensing requirements. For example, we can import nurses
from Mexico, they would not be qualified. Health care licensing is regulated by
the state. Nothing like that to worry about with IT, legally, practically
anybody can do practically anything.

4) No unions to fuss with. Replace all the IT workers you want with visa
workers, then send the entire department offshore. No need to worry about union
pushback.

5) No standardization in IT. You can always tell the government there is a
shortage of qualified workers, since there is absolutely no definition of what
is "qualified." You have a virtual carte blanche to make up any kind of
statistics about salaries, or qualification. For example, you could look for
workers with an arbitrary list of experience requirements, and when you don't
find them, use that as an excuse to hire offshore workers with no experience,
and just a liberal arts degree.

6) US IT workers are not represented by any professional organization, and
therefore have no voice in congress. Dump on IT workers all you want, what's to
stop you?

7) Due to massive corporate propaganda, it is widely believed there is a
shortage of qualified US IT workers, so nobody will blame you for going
offshore. There was significant public outcry in the 1980s when manufacturing
was moved offshore. Michael Moore even created a movie, and Billy Joel wrote a
song. Nobody cares about spoiled IT workers.

8) You can point to contributions made by actual immigrants, and then prentend
that H1Bs are actual immigrants. Great PR.

9) You can place the race card. You can say that anybody critical of replacing
US workers with offshore is a racist, bigoted, and xenophobic; and thereby,
immediately quash any dissention.

10) US IT workers are too spineless, selfish, arrogant, and disorganized, to put
up any sort of meaningful resistance to your offshoring plans. Take your time,
when you start importing visa workers, only the workers who are directly
affected will care. The guy in the next cubical won't care until his head is on
the chopping block. US IT workers have a special trick of sticking their noses
in the air, and their heads in the sand. US IT workers will say: "they could
never do without me. I'm much too valuable. Only the poorly qualified lose their
jobs." Dumping on US IT workers is like shooting fish in a barrel.

11) Significant saving. US IT workers can be quite expensive.

12) Indentured servant status is even more important for IT workers, than other
workers. Everybody's information system setup is different, so it takes a while
for IT workers to learn their jobs. US workers can quit just after they get up
to speed. Which means you are training people for their next job. Worse yet,
they can take what they have learned (on your dime) to your competitors. With
visa workers, they have to stay with you for six years, then you can send them
to your offshore operations.

12) Most IT workers don't work directly with the public, so unlike helpdesk
stuff, you don't have to worry about complaints about accents, or anything like
that.

13) Most of the work can easily be done offshore, and you don't have to be a big
employer to take advantage of it. I cannot hire a plummer for $2 an hour, but I
can go on rentacoder and hire a web-developer for that.

14) Technologies like romoting in, and video confrencing get better all the
time.

Monday, May 30, 2011

Obama appointee to replace US workers with Indian workers

Xerox CEO, an Obama appointee, may send jobs to Indian firm

May 23, 2011:

Xerox Corp., whose CEO Ursula Burns is advising President Obama on exports, last week told its product engineering employees that it is in outsourcing talks with India-based IT services firm HCL Technologies.

Some of the affected Xerox employees may see their jobs transferred to HCL, said a Xerox spokesman, but how many will be affected is not known. Xerox has "hundreds of employees" working in product engineering groups in California, New York, Oregon, the Netherlands and the U.K., the spokesman said.

Burns was appointed last year as vice chairwoman of the President's Export Council, a panel of CEOs advising the Obama administration on how to increase exports, which would lead to an increase in domestic jobs. Boeing CEO and Chairman James McNerney is its chairman.

Burns is outspoken on the need to improve the pool of math and science graduates in U.S. schools. In a recent video interview on CNN , she warned that if graduation rates in these areas don't increase, "we become a server nation; our standard of living must decline."

Burns, in that interview, also argued that there is a dearth of workers who can fill skilled jobs, and when jobs aren't filled, the response from U.S. employers is: "We exported the work."

"The work has to be done, so we send the work to people in other places that can get it done. This is absolutely backwards," Burns said.


http://www.networkworld.com/news/2011/052311-xerox-ceo-an-obama-appointee.html?hpg1=bn

Wednesday, September 29, 2010

Could the H1B work visa be unlawful?

U.S. Code Collection
TITLE 8, CHAPTER 12, SUBCHAPTER II, Part II, § 1182
Inadmissible aliens

(5) Labor certification and qualifications for certain immigrants
(A) Labor certification

(i) In general, any alien who seeks to enter the United States for the purpose of performing skilled or unskilled labor is inadmissible, unless the Secretary of Labor has determined and certified to the Secretary of State and the Attorney General that—

(I) there are not sufficient workers who are able, willing, qualified
(or equally qualified in the case of an alien described in clause (ii)) and available at the time of application for a visa and admission to the United States and at the place where the alien is to perform such skilled or unskilled labor, and

(II) the employment of such alien will not adversely affect the wages and working conditions of workers in the United States similarly employed.
(ii) Certain aliens subject to special rule For purposes of clause (i)

(I), an alien described in this clause is an alien who—
(I) is a member of the teaching profession, or
(II) has exceptional ability in the sciences or the arts.

http://www.law.cornell.edu/uscode/8/1182.html

Worth noting:

1) The exception in 1182 relies on the Specialty Occupations list.
http://www.doleta.gov/regions/REG05/Documents/eta-9035.pdf (Page 2)

Maybe the DOL needs to reexamine the "shortages" in each occupation with hard data.
http://immigration-weaver.blogspot.com/2009/03/petition-to-remove-computer-related.html

2)  1182 has been watered down. The phrase "and at the place where the alien is to perform such skilled or unskilled labor" was added by lobbyists -- 1182 used to cover the entire United States.

3) The exception in 1182 was created specifically for the GATS agreement which is more stringent than the conditions in US law.  Again, under GATS, H-1B is a single term 3 year visa with no dual-intent provisions and no extensions.  Stricter layoff conditions etc.

Maybe, if we had the protections written into GATS, we'd be a bit better off.

http://immigration-weaver.blogspot.com/2010/08/wto-gats-and-h-1b-pundits-pandering-in.html

Tuesday, September 28, 2010

The H1B and "free trade"

Usually, when a group of people start screaming and crying about wanting "free trade," they actually mean that they want just the opposite of true free trade.

US employers routinely complain that they should be about to the hire the best bargains they can find, no matter where in the world those workers live. That would be "free trade," those employers constantly tell us.

The employer's assertions seems plausible enough, until you stop and remember that H1Bs are hired on very different terms than US employees. Unlike a US worker, when an H1B has gained experience, that H1B can not demand a raise, or threaten to leave. It is very difficult for an H1B to change jobs. The H1B can not freely market his/her skills. Frankly, that H1B is denied "free trade" when it comes to finding another job. And that denial of free trade, is exactly what US corporations want.