"Democrat outsourcing inquiry defeated

The House Science Committee defeated a Resolution of Inquiry, H Res 717, introduced by Democrats demanding that the Department of Commerce release a report on outsourcing, by a vote of 19-14. But a motion to report the resolution adversely failed on a tie vote of 17-17, so the Committee will need to hold another markup next week.

We are all concerned about jobs for hardworking Americans. It is difficult for me to understand how this committee can seriously talk about bolstering America s global competitive position if, in the next breath, we claim not to want the most sophisticated analysis done by the Federal Government on what is happening with American jobs in high-tech fields, Rep. Bart Gordon, D-TN, the committee s Ranking Member and sponsor of the resolution.

Republicans on the committee dismissed the inquiry as partisan political gamesmanship. [T]here s no policy at stake in the resolution before us today. It has nothing to do with taking action in response to outsourcing. It s only about scoring political points related to a report. The release of that report wouldn't create a single new job although its sponsors may hope the debate over it creates new jobs for some Democrat candidates, said Committee Chairman Sherwood Boehlert, R-NY.

Boehlert also claimed that the resolution was unnecessary because all of the information in the DoC report had already been provided to the National Academy of Public Administration for its more extensive investigation into outsourcing. But the Democrats said that they had interviewed the DoC analysts who worked on the report, who said that they had spoken with NAPA, but had not made their data available.

Other sites House Science Committee press release. Democrats press release. "

"With Three Million Manufacturing Jobs Lost in the U.S. in the Last Five Years, Where Will Your Grandchildren Be Working?

PRNewswire

TROPHY CLUB, Texas, March 30 /PRNewswire/ -- The following was released today by Tony Harvill of Revitalizing American Manufacturing Consulting:

Tony Harvill insists that U.S. manufacturing jobs do not have to go overseas. However, right now, American manufacturing companies are not doing enough to stop the job drain. They're taking the easy road out and have given up. Meanwhile millions of middle class workers continue to suffer in this country. Their grandchildren don't have a chance.
"

"Government offshore report becomes political hot potato
House Democrats want a Commerce Dept. report on the effects of outsourcing released

News Story by Patrick Thibodeau

MARCH 24, 2006 (COMPUTERWORLD) - Democrats on the U.S. House Science Committee are demanding that the U.S. Department of Commerce release the complete version of a study that examined the impact of globalization and offshoring on U.S. jobs.
"

"Offshoring cited in Florida data leak
Florida state workers warned that their personal data could be vulnerable as state's HR system was improperly handed over to a company in India.

By Robert McMillan, IDG News Service, 03/24/06

Florida state employees are being warned that their personal information may have been compromised after work on the state's People First payroll and human resources system was improperly subcontracted to a company in India.
"

"Not Your Father’s Detroit

http://www.prospect.org/web/printfriendly-view.ww?id=11300

The Motor City virtually created the old era of shared prosperity. Today, the middle has fallen out of the economy. What can we do to get it back?

By Harold Meyerson

Issue Date: 04.08.06

"Info Tech Guy" writes:
Interesting article focused primarily on outsourcing job loss in the industrial and manufacturing sector but taking note of IT as well. Someone should email the author to clarify why high tech jobs for Americans are disappearing; they didn't disappear b/c the tech bubble burst...

The authore notes that "the case for corporate clean-up goes well beyond the need to end legalized looting." "

"Pay Cuts Pummel U.S. Middle Class as Pollina Urges 'Fair Trade,' Not Free Trade Policies
Tuesday March 21, 8:45 am ET


CHICAGO, March 21 /PRNewswire/ -- Did you know that the average American who loses their job to outsourcing takes a pay cut of 20% when they are re-employed? Ouch!
"

"Will Your Job Survive?

By Harold Meyerson
Wednesday, March 22, 2006; A21

In case you've been worrying about how the war in Iraq will end, or the coming of avian flu, or the extinction of the universe as we drift into the cosmic void, well, relax. Here's something you should really fret about: the future of the U.S. economy in the age of globalization.
"

"Unisys sets up outsourcing operations in China
IDG News Service 3/17/06

Sumner Lemon, IDG News Service, Beijing Bureau
Unisys Corp. has set up a software development and outsourcing services center in Shanghai, the opening move in its bid to establish a large outsourcing business in China, a company executive said Friday.
"

"Apple's Bangalore Plans Fuel IT Outsourcing Debate

By Gene Koprowski
www.MacNewsWorld.com
Part of the ECT News Network
03/17/06 11:01 AM PT

Apple is following the lead of many other PC and electronics firms that have set up call centers in India. The "commoditization" of computer industry jobs is a reality that all workers must acknowledge, George Black, president and CEO of RSA, a Houston-based IT management firm, told MacNewsWorld.
"

"Following James Webb's appearance on "Hardball", he answered questions on the DailyKos political blog at http://www.dailykos.com/story/2006/3/14/19014/5349. ITPAA readers will find Jim Webb's comments very, very interesting... He says very clearly, "Free trade isn't fair trade" and asks, "how can we fairly compete?” "

"Ed Note: A reader notifies us:
"The very same Daniel Griswold who is the former director of the Center for Trade Policy Studies at the Cato Institute. The very same Daniel Griswold who went on every talk show he could and trumpeted the benefits of offshoring and how it was going to be 'the low end jobs that Americans didn't want anyway."

Offshoring: The Consumer Wins?
by Demir Barlas, Line56
Thursday, March 16, 2006




Editor

If you're following tech news, you may have noted that Democrats in Michigan intend to introduce an anti-offshore outsourcing bill at the state level. That legislation is going to be the impetus of continued discussions about offshore, in Michigan and elsewhere. There are a couple of ways to think about the issue. The article is going to incorporate a selection from a related paper by Daniel T. Griswold and Dale Buss of the Mackinac Center for Public Policy, followed by my reactions.

Griswold and Buss
"

"On Tues, March 14, Virginia Senate candidate James Webb was interviewed on Chris Matthew's "Hardball", http://www.msnbc.msn.com/id/11842079/
Webb has a reputation as a no-nonsense direct person. His comments are truly refreshing in light of all the lies and half-truths spewed by most elected officials. Given the fact that his primary opponent is pro-outsourcing ITAA lobbyist Harris Miller, the comments are appreciated --Info_Tech_Guy"

"As regular readers of ITPAA.org recognise the reality faced by American IT workers is that our employments situation is tenuous akin to that of industrial workers with the added threat of job loss from imported low-wage (NIV) workers. Here, Pat Buchanan attacks the "free trade" agreements that set the new outsourcing paradigm. I find this quote especially telling:
"What NAFTA, GATT, Davos and the WTO have always been about is freeing up transnationals to get rid of First World workers, while assuring them they could hold on, at no cost, to their First World customers." One could add that the proponents of NIV programs (another form of outsourcing -- First World worker replacement), hold the same view that somehow corporatations will continue to hold onto a prosperous First World customer base while eliminating middle class jobs in the First World. Perhaps someone should send this article to would-be VA Democratic senatorial candidate Harris Miller (of ITAA notoriety)? Maybe he will re-think his previous positions in support of outsourcing American jobs and use of NIV replacement workers? Reality never seems to make a difference with people who prosper from supporting the job losses of other Amercans. --Info_Tech_Guy "

"Editor's Note: Harris Miller is like a eunuch in a harem when it comes to politics. He knows how it's done. He sees it done around him all the time. He just can't do it himself.

Miller's ITAA past is beginning to haunt him as Virginia political blog sites begin to take note of IT worker claims that Miller is a pro-outsourcing and anti-American worker. Will Vehrs the blogmeister at the Virginia political blog, "Commonwealth Conservative", (www.vaconservative.com) specifically mentions IT worker anger toward Miller."

"The hidden cost of outsourcing
Outsourcing customer service may seem like a bargain, but it can cost you some of your most valuable clients.
Business 2.0 Magazine
by Jeffrey Pfeffer
March 1, 2006: 5:47 AM EST

(Business 2.0) - Dell (Research) tried it, then reversed course. Capital One (Research) gave up as well, and so did JPMorgan Chase (Research). All came to the same conclusion about their attempts to farm out front-line customer-service jobs to outside contractors: The hidden costs far outweighed the potential savings in labor expenses.
Waning enthusiasm
"

"(I expected to see a study like this. I believe its part of the campaign to increase the H-1b visa limit. The report takes a very optimistic tone in spite of the fact there were a 140,000 high tech layoffs last year (up 118,000 from the year before). The report claims that employment has increased by 3% in recent years. Well how many Americans actually got those jobs and how many were filled by H-1bs? Personally I side with Dr. Matloff and Dr. Hira. This report is just another attempt to lure uninformed young students into a field that has no job security. If you don't believe that just ask the 2000 or so folks at Oracle who are about to lose their jobs or the 15,000 workers at HP who lost their jobs last year. - jgm)

Tech jobs still plentiful in U.S.
Optimistic report calls offshoring's effects overstated
- Carrie Kirby, Chronicle Staff Writer
Friday, February 24, 2006
"

"The outsourcing wave hits investment bankers

It's not just IT support anymore. Banks increasingly are taking their research analysis operations abroad -- and deal-making may be next.
By Shaheen Pasha, CNNMoney.com staff writer
February 22, 2006: 9:45 AM EST
"

"Outsourcing Is Climbing Skills Ladder

By Steve Lohr, New York Times

The globalization of work tends to start from the bottom up. The first jobs to be moved abroad are typically simple assembly tasks, followed by manufacturing, and later, skilled work like computer programming. At the end of this progression is the work done by scientists and engineers in research and development laboratories.
"

"Anti-offshoring plans aim to protect financial data
Mike Sunnucks
The Business Journal

A number of proposals have been put forward at the state level aimed at restricting foreign outsourcing and offshoring and offering more consumer protections related to identity theft and corporate data breaches.
"

"Travelers outsources IT jobs
Insurer says Indian contractors will replace fewer than 50 here
BY SHERYL JEAN
Pioneer Press

St. Paul Travelers Cos. on Thursday told more than 100 technology employees, including fewer than 50 people in St. Paul, that they would lose their jobs to contractors in India in the next two to six months.
"

" Meijer outsourcing 81 jobs

February 9, 2006 - 11:19AM
(NEWS 3) - Meijer is outsourcing 81 information and technology positions to India this July.

The company told full-time and contracted workers Tuesday that they will lose their positions.

Meijer also announced it will replace about 50 consumer call center employees with workers at a Boston-based company.

Meijer says the employees will be offered new positions in the company's network or, if an employee chooses not to stay with the company, a severance package.
"

"Sprint Scraps Major IT Outsourcing Deal with IBM



By Paul McDougall Courtesy of InformationWeek
Wireless and long distance service provider Sprint Nextel Corp. is quietly pulling back much of the IT work it outsourced to IBM two years ago under a $400 million deal and is also reviewing a multi-billion dollar customer service support contract it holds with the computer services giant, InformationWeek has learned.
"

"Is IT Outsourcing Stagnant?
January 23, 2006
By Stan Gibson

While there is much talk about outsourcing and services being the future of IT—and IT becoming, in effect, a service—it seems that IT outsourcing is actually not growing—depending on what statistics you look at and which you believe.

"

"Slower rate seen for cuts in high-tech jobs
'Smallest' trim said to be evidence of possible rebound across sector

Bob Keefe
Cox News Service
Jan. 22, 2006 12:00 AM

Finally, a little light is showing at the end of the tunnel for the nation's layoff-weary technology workers.

"

"
The head of an Indian consulting firm and a high-tech-union president face off on the effects of offshoring and globalization.
From: Issue 102 | January 2006 | By: Fast Company staff

Ashok Soota

Cofounder and managing director of MindTree Consulting in Bangalore, India
American Express OPEN

Marcus Courtney

President of WashTech/CWA, a Seattle-based union for high-tech workers
Resolved: Offshoring is good for America.

Soota: My observations: "Offshore" is a term borrowed from the manufacturing economies of the last century. In the knowledge economy, the terms offshore and onshore have no relevance. At MindTree, we have substituted these with the term "OneShore."
"

" The Death of American Manufacturing
By Robert Morley
February 2006

Globalization and outsourcing are hammering our icons of industry.

For over a half century, American manufacturing has dominated the globe. It turned the tide in World War ii and hastened the defeat of Nazi Germany; it subsequently helped rebuild Europe and Japan; it enabled the United States to outlast the Soviet empire in the Cold War. At the same time, it met all the material needs of the American people.
"

"CTS to outsource work to Mexico, Singapore

BERNE, Ind., Jan. 6 (UPI) -- CTS Corp. said Friday it was outsourcing work currently being done at its Berne, Ind., factory.

Automotive product operations at Berne will be transferred to CTS' automotive facilities in Matamoros, Mexico, and Elkhart, Ind. Electronic components operations in Berne will be moved to CTS' Singapore facility.

CTS did not reveal how many workers would be unemployed as a result of the changes, set for completion late this year."

" More to Offshore

By WS&T Staff
January 05, 2006

Most financial institutions are not taking full advantage of the potential cost benefits of offshore outsourcing, according to a survey of global financial services companies by Deloitte Touche Tohmatsu (DTT). On average, survey respondents report that 3.5 percent of their global head count is based offshore. But, the most-effective offshore operations, DTT says, are those with 6.7 percent of their workforces located offshore. If all 62 surveyed companies were to offshore that portion of their head count, the collective annual cost base would be reduced by $16 billion, more than tripling the current reported savings of $5 billion, DTT contends.

Still, financial services executives estimate that by 2010 they will have moved 20 percent of their total cost base offshore, along with 10 percent to 20 percent of their employees. "

"Offshoring is a choice, not a law of nature
Robert Baillie

The article, "Life after offshoring" (Dec. 27) paints an alarming picture of America's economic future. It warns us that we'd better get used to having corporations send our jobs overseas.

The dean of the Colorado State University Business School said this is just "the nature of free enterprise." Tenured business professors are constantly telling us that this competition is good for the economy.
"

"Life after offshoring
Six workers deal with new reality
By CHRISTINE MCMANUS
ChristineMcManus@coloradoan.com

Rich VandePoll's job as a program manager for digital cameras at Hewlett-Packard Co. recently went to Singapore without him. To find a new job, he's had to consider moving out of Loveland or changing careers.

Dana DeRouchey, of Fort Collins, is also still looking for a Web development job. DeRouchey's former position in Northern Colorado was cut during the economic downturn, along with a number of others.
"