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Friday, December 11, 2009

Nationwide H-1B Visa Scam

Well folks,
Here we go again with Corporate America's underbelly being exposed for it's addiction to greed and it's integral disregard for Americans seeking a job that provides a reasonable paycheck.

Today's post was inspired by a website on eweek.com that grabbed my attention as I reviewed web subjects that support my belief that corporate greed has eroded integrity and moral responsibility to provide Americans /with rewarding American jobs/training careers in this challenging economic time.

Perhaps, you too, would be attracted to a title that states "

Feds Bust Nationwide H-1B Visa Scam". Now doesn't that just make you want to have another cup of strong coffee and check that out? Or how about the statement from today's referenced website at "http://www.eweek.com/c/a/IT-Management/Feds-Bust-Nationwide-H1B-Visa-Scam/" that states a rather interesting bit of news as follows:

=================
Vision Systems and five other companies under investigation have said their H-1B workers have been brought to the United States to fill existing IT vacancies. Whitaker claims the companies have not always had jobs available for these workers, placing them in nonpay status after they arrive in the United States.
In some cases, according to the charges, the H-1B workers have been placed in jobs and locations not previously certified by the Department of Labor, replacing qualified American workers and violating prevailing wage laws. The companies and foreign workers have allegedly submitted false statements and documents in support of their visa petitions.
===========================

According to this website, the "Federal Authorities" seek $7.4 million in forfeitures, however, now I wonder WHAT did the feds do with the $7.4 million in forfeitures? Are "Federal Authorities" using that money to fund new support for American worker's equal opportunity to find work opportunities? Or ... is the only game in town to curb H1B abuse is more like a *"keystone Kop" episode where nothing really ever gets done to stop the H1B crooks from ripping off American worker jobs? Check this site out and share your comments with me and the rest of the world. Big question is... "what should be done to to effectively give American workers a decent shot at a decent job opportunity? That's it for now. Take care.


*ref:

( http://en.wikipedia.org/wiki/Keystone_Kops)

Saturday, December 5, 2009

Demand for H1-B visa continues to rise

Hi Everyone,
I've been somewhat busy and not attending to this blog message as our "jobless recovery" unfolds. As we all know, the concept of a jobless recovery is based on the idea that employers will not initiate any hiring until the current employed work force reaches a point where they are either burnt out and quit or have been pushed to their peak productive ability. Unfortunately, the greed factor is the true master of both the employer and the employee here in America.

Today's discussion is focused on this given blog's title. I found this title on "The Economic Times" India website at " http://economictimes.indiatimes.com/articleshow/5300526.cms ". The following comments from that website caught my interest and maybe, you too, will roll your eyes. The comments go as follows:
========================
Latest figures released by the US Citizenship
and Immigration Services (USCIS) show an increase in the number of people applying for H-1B visas in the last two months.

As a result of which, till November 27, the USCIS had received about 58,900 H-1B petitions. This is still over 6,000 short of the Congressionally-mandated cap of 65,000 H-1B visas
in the general category.

=============================

Now I would like to suggest that as our economy "recovers", who will get the good jobs .... Americans or ..... Outsourced resources? My suspicion is that GREED will push employers to hire those unfilled 6000 H1-B resources before Americans. As I have stated before in this blog, I believe that corporate America should have income incentives that would encourage the hiring and training of Americans rather than the past focus on cheap outsourced resources. In that regard, I invite your feedback on the following statements of belief:

1. I believe that President Obama's promise to tax American companies that hire outsouced resourses will take a big bite out of the outsourced hiring addiction.

2. I believe that President Obama's promise to give tax breaks for American companies that hire Americans will have a dramatic effect on American employment as the Great Recession continues to end.

3. I believe that the so called *"Stimulus money" to bail out dysfunctional banks and financial institutions should, in fact, be made available to help train countless young Americans that have been pushed out of the job market for lack of skill or training.

* More on where stimulus money goes, refer to URL "http://www.recovery.gov/Pages/home.aspx")

Feedback appreciated on your point of view on these topics discussed here.
That's it for now. Take care

Thursday, July 23, 2009

Where the tech jobs are ?... comments

Hello All, Just a quick reference to a "H1B related" article that just came out of the CNN news world. Today's reference article was written by Anne Fisher, s fortune magazine senior writer found at link "http://www.timeinc.net/fortune/information/presscenter/fortune/bios/FOR_Fisher.html". Refere to the following CNN link for viewing:

http://askannie.blogs.fortune.cnn.com/2009/07/21/where-the-tech-jobs-are-now/

I like the opening catch line "At least 400,000 tech jobs are going begging"... Then the article continues to discuss one of my favorite H1B concerns quoted here:
-------------------------------------------
"Most people don’t realize that every job given to an H-1B or other visa category is a job that American workers have been BARRED from applying for. In most cases, even if the American somehow heard about the opening, they wouldn’t even have to consider him. And most job openings that are earmarked for foreign workers are never even posted where we can see or apply for them, because they go through layers of bodyshop (oftal also run by foreign workers here on guestworker visas). Most American job candidates are never even seen or interviewed for jobs that are open in America."
---------------------------

Anyway as you can see, today's blog is simply to point you to another blog and at the same time catch any comments you might have about ways that I can improve this blog as I attempt to alert all of you on a very real American economic threat...the OutsourcedVirus. Later

Saturday, July 18, 2009

Cisco lays off 600 to 700 workers at headquarters

Hello all,

Given this most recent notice of Friday's Cisco System's layoff, I have no idea on how many American workers or (if) H1B workers were affected but here's the coverage on washingtonpost.com:

http://www.washingtonpost.com/wp-dyn/content/article/2009/07/17/AR2009071702594.html

However, I was curious to see if there were still any outstanding H1B openings listed at the website "Myvisajobs.com" that I mentioned before in a previous blog. Just out of curiosity I referenced that site to take a look. Now folks, maybe Cisco just has not removed H1B requests from the myvisajobs.com site yet ... but ... what I found makes me wonder. Take a look for yourself:

http://myvisajobs.com/H1B_Visas.aspx?Z=94087&E=cisco&R=100&OG=All&SO=all&Y=All

Anyway, I will be curious if the Cisco H1B (San Jose, Calif) request will be removed soon or... will remain active.

While we're on the subject of Friday's Cisco layoff notice, I invite you to check another blog with an interesting name "LayoffBlog.com" discussing the H1B subject.

http://layoffblog.com/2009/07/16/cisco-lays-off-several-hundred-workers/

Some pretty good responses to that blog piece that you might find interesting. Meantime, as the Great Recession continues to devour American workers, let's not forget to buckle up and prepare for a rough economic ride in the months to come.
Meantime, as always, your comments are invited. Cheers

Friday, July 17, 2009

H1-B Blues ... Do You Know The Tune ?

Hello All,
Just returned from a visit to Oregon where I learned that the Great Recession has consumed a few unemployed souls there as well as the California job market scene. That experience encouraged me to get back to the blog sphere and reference another blog that seems to know the same H1-B song that I have been singing. In this case, a computer science professor, "Norm Matloff " of the University of California, Davis, adds his special credentials plus refined viewpoint that harmonizes with my own words.

In his blog, Norm Matloff points out some aspects of the H1B visa program that was instructive to me. Certainly I have already suggested that the Visa Quota program was "bad" for Americans, but it had not occurred to me that the program was also bad for foreigners who learned that lower wages were more important to companies than "high quality and technological prowess" (quoting Norm here).

So one conclusion that makes me wonder ... if companies have focused on lower wages as a basis for measuring job requirements .... then how does "high quality" job skills get a foot in the door ?

OK, here's the referenced website blog:

http://phoenixwoman.wordpress.com/2009/07/16/the-h1-b-blues/

Comments out there? Later

Wednesday, July 1, 2009

White House Establishes Corporate Fraud Task Force

Greetings all you seekers of knowledge. What's entertaining (and educational) to me about the Internet, and especially blogs, is this new-found medium that helps create cyber communites of common interest. Communities that help us all to learn about events that shape our collective world-view mindsets. Today's discussion is rooted in an interesting website name that succinctly captures my own world-view about corporate greed, h1b visas, job quotas, USA unemployment problems, and the whole USA economic mess. How do you like this domain name? :

http://www.h1bvisasucks.com/

Now I must admit that the site name does seem to be somewhat biased at first glance, but, let's explore the message embedded in it's name a little further. Here's an interesting link from this site to a well done blog at " http://www.whitehouse.gov/briefing_room/" where you'll find (as they say) current photos, video, and blogs, as well as proclamations, executive orders, and press releases related to our subject matter.

Meantime, back to our subject website " www.h1bvisasucks.com/ ", admittedly, it does not appear that much has been added to this blog since the early 2000 years but it is interesting that someone was unhappy about H1B subjects back then and the blog is still active. I am suspecting that the person who started this blog actually got a job shortly after creating this website. That's it for today, as always, your comments are welcomed. Cheers

Monday, June 29, 2009

Visa Consultants selling H-1b visas

Hello out there,
I am finding more and more that YouTube.com media is very effective as a way to express a message that has lasting effectiveness as a way to educate. I am also presuming that you visit this blog because your are all as concerned about the "greed virus" effect on the American economic vitality as I am. I have recently found another YouTube video that captures the breakdown in corporate integrity in promoting "Greed Virus" value systems. This mindset has "infected" even the large H1B institutions in India itself. The follow referenced video clip says it all:

http://www.youtube.com/watch?v=bOqOxYr4F18&feature=related

Now perhaps you'd like to share your thoughts about corruption taking root in other countries that have been influenced by the "profit" mindset we have been exploring?

Later

Saturday, June 27, 2009

PERM Fake Job Ads defraud Americans to secure green cards

Hello everyone,
Well truth is once again stranger than fiction. I assure you that the more I investigate the trail of Corporate American greed and extinct integrity, I become more evangelistic about the destructive greed virus that has infected America's job opportunities. Watch these YouTube videos as American business HR people discuss strategies for justifying the issuance of green cards to non-American job seekers by proving that "qualified" American workers cannot be found. After viewing these clips, perhaps you too might have a comment you'd like to air out on this blog? Later....

Referring URLs:

http://www.youtube.com/watch?v=TCbFEgFajGU

http://www.youtube.com/watch?v=Fx--jNQYNgA&NR=1


As always, your comments appreciated. Later

Friday, June 19, 2009

H1B Visa Top Sponsors in Computer Specialist, IT

Hello All,
Well what a surprise it was for me to discover a website with the "interesting" domain name of "MyVisaJobs.com" . This site allows the location entry and/or occupation will actually list (as today's blog title suggests) all companies looking for H1B workers. Notice that US companies like Dell, Informax, HP, Nokia, Tibco Software Inc, Hawaii Pacific University, on and on ... all list H1B Visa petitions for technology related jobs? Some people might say ... "Oh they're only looking for 19 or 20 Visa entries" ...but folks this kind of stuff adds up after awhile ... plus.... this practice also means that 19 or 20 young and older Americans are losing out on experience and personal career growth opportunities. Here is a reference URL for your enjoyment if you would like to actually check out to validate my comments today:

http://www.myvisajobs.com/H1B-Visa-Occupation/Computer-System-Technical-Support/IT-033.htm#

For any of you curious to explore the details of 6,251 petitions documented for Cisco Systems, Inc ... you might find this URL rather interesting ... (* especially check out the salaries listed here)

http://www.myvisajobs.com/Company.aspx?ID=113035

Stay tuned for my next posting which will discuss the possibility that the powerful India outsourcing forces are considering imposing trade restrictions on US business to protest the cut back in H1B US hiring.
As always, what are YOUR opinions on today's posting?

Monday, June 8, 2009

My Own Competiton with H1B realities?

Hello out there,
My own expertise is currently being fine tuned while finishing certification in SEO "Search Engine Optimizing" course. These new skills are intended to leverage a background in ERP, CRM, Business Analysis, and DBMS expertise. While recently doing a google search for SEO and ERP expertise, I found that (wow am I surprised!) that a number of H1B people are also aggressively trying to corner the market in my own back yard ! Here is the google search results for SEO and ERP keywords:

http://www.google.com/search?rlz=1C1GGLS_en-USUS291US305&source id=chrome&ie=UTF-8&q=erp+and+seo

This example search result supports my on-going premise that while US corporations continue to open doors to offshore business and closing doors to both qualified and younger US workers, the battle for technical expertise in this country continues to be lost to the greed factor in national economics.

By the way, while earlier tooting my own whistle regarding my own skills, the fact remains that this battle to provide specialized technical skills to US workers continues to look gloomy ! I, personally, was fortunate, over the years, to develop tech skills as a consultant. Of course, on the job training is indeed the best teacher for any skill set. However, given the current greed motivated USA job environment, I am pessimistic regarding available future secure jobs (or opportunities to get meaningful experiences) for today's students of math, science, and technically oriented careers. Well now that I have vented a few of my concerns for today's post , what are your own thoughts on these matters?

Thursday, June 4, 2009

The Real High-Tech Immigrant Problem: They’re Leaving?

Found out today that many H1B applicants refer to American jobs as their "American Dream". I would like to say that the "American Dream" for some may be the "American Nightmare" for a number of qualified US Citizens.

In the spirit of this blog, (promoting the idea that a "greed virus" is sapping America's economic vitality) today's discusion is focused on a rather interesting twist on the question regarding ..."is the H1B program good for America?" For today's post, I reference the following New York Times article credited to Steve Lohr:

http://bits.blogs.nytimes.com/2009/03/02/the-real-high-tech-immigrant-problem-theyre-leaving/#more-2659

Here's a rather provocative factoid that caught my attention in that article:

" Mr Vivek Wadhwa former technology entrepreneur who is an adjunct professor at Duke University estimates that in the last two decades, 50,000 immigrants left the United States and returned to India and China. In the next five years, he projects that 100,000 more will make the return trip. “A trickle is turning into a flood."

Well... now I would like to submit a few questions for your review:

1. Will the departure of H1B resources be a good thing or a bad thing for America?

2. Will the fact that highly educated and talented H1B people, going back to their OWN countries leave America in a technological chaotic mess ???

3. Would the departure of H1B resources be a wake up call for America?

4. Would new found focus on an upgraded education system be a good start for breaking our addiction to foreign job resources?

5. Would innovative programs that encouraging more young people to embrace math and computer sciences as a path to secure future careers be a meaningful goal for a vital US economy?

As always, your thoughts on these questions are encouraged. Cheers !

Saturday, May 30, 2009

H-1B Visas and Unemployment: A Federal Case

Well folks, the drama continues about New Jersey-based Vision Systems Group. Could it be that a can of worms has been opened in the H-1B world? Let's take a closer look at the Federal case being pursued. This is today's URL reference:

http://blogs.eweek.com/careers/content001/h-1b_foreign_workers/h1-b_visas_and_unemployment_a_federal_case.html

Here's the significant question asked in this new bit of news:

"The U.S. government, at least the part that is fighting H-1B visa fraud, is looking to prove a point about the program: that fraud in H-1B visa program and the number of visa holders in U.S. tech jobs are putting current struggling American technology workers out of work."

Given the "hand in the H-1B cookie jar" that I mentioned in my last posting, the spotlight now is captured in this final quote from today's referenced article:


"The problem is that while there appears to be a strong case for fraud and abuse relating to the visa program, it is harder to substantiate the full impact on American workers and all the layoffs and unemployment occurring. The two are not dependent on each other. Layoffs would be happening regardless of whether there was an H-1B visa program or not."


As always, I don't forget the "greed virus" negative effect on business ethics and moral values. As always, I now ask for your comments out there. Cheers !

Wednesday, May 27, 2009

US: H-1B workers outnumber unemployed techies

Hello to everyone in cyberland! You're here because, at some level, you're curious about this blog's theme that outsourcing American jobs is a manifestation of the "greed virus". Now we have some more fire to heat the flames of frustration as a company called Vision Systems Group" was caught with its hand in the H1B cookie jar referenced by a May 26, 2009 Computerworld article at:

http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9133529&source=rss_news


Note: * Vision Systems Group in South Plainfield, NJ URL found at http://www.vsginc.com/ "


===========================

** Here's a bit of that Computerworld article quote that caught my attention:

"Vision Systems was included in a sweep that led to arrests of some 11 people in six states. The government, in announcing its action, said the companies and people involved were "displacing qualified American workers," but didn't identify how many. In court papers filed last month, the U.S. indicated it may be getting ready to do just that. The U.S. said it is "prepared to demonstrate to the court the manner in which the defendant's schemes, along with similar schemes by similar companies have substantially deprived U.S. citizens of employment." The government then points out that "in January of 2009, the total number of workers employed in the information technology occupation under the H-1B program substantially exceeded the 241,000 unemployed U.S. citizen workers within the same occupation."

=======================

There is mention of "similar companies" in this quote and makes me wonder how many others are on the H1B gravy train?
The article continues to provide another troubling factoid to "digest" as follows:

"In the case of Vision Systems, the U.S. said the company "consistently hired only foreign workers in order to fill information technology positions within the United States." The government said "although the exact amount of loss to U.S. citizen workers has not yet been determined, there is no question that the amount of lost wages and benefits to U.S. citizens has been substantial"

Given our current economic crisis ( both state and federal ) wouldn't it be nice for this country to have Americans spending those paychecks rather than non citizens? Ok...nuff said ... any opinions out there about this latest bit of news?

Sunday, May 24, 2009

Infy cuts H1-B visas to reduce overseas bench

Ref: http://www.bpowatchindia.com/bpo_news/infosysh1-b/may-23-2009/infy_cuts_h1-b_visas.html

" Infosys Technologies – which holds the largest number of H1-B visas among all the Indian IT services companies – has started reducing its ‘overseas bench’ strength.to the latest update from the US Citizenship and Immigration Services, as against an available upper cap of 65,000 as mandated by the US Congress, to only about 45,000 H1-B visa applications received as of May 19 this year. Other than the global recession, experts say the fact that each H1-B visa costs about $3,000-5,000 per applicant is reason enough for companies not to invest so much on obtaining such visas."
============================
Well readers, it seems that "The times they are a changing" as the reality of the need to restructure old concepts about corporate America's "addiction to profit at any cost" sinks in. The wakeup call is simply stated, if people don't have jobs they don't buy things, they can't plan for a future by savings and investments, education, quality of life, and the infrastructure of states like California begin to collapse in economic chaos. A rather interesting quote from the referenced article above provides a final touch of irony as the India outsource companies struggle to survive:
============================
" Of late, most India companies have increased their uptake of local talent in the US. Wipro has already announced its intention to hire over 750 US workers for its newly opened centre in Atlanta. IT major TCS is also focussing on more US citizens in its workforce, according the company’s COO N Chandrasekharan. “It’s important to create critical mass and have a local delivery capability to service onsite clients. If we do this from India, it will be quite costly.”
============================-
It looks like the old saying "The squeaky wheel is the one that gets the oil" is coming true. However, now India companies want to HIRE Americans ... but wait ..... The money STILL goes to India if the bossman is from India ! Why not promote a national movement to help USA companies to hire Americans ? Then the money will STAY in America. Given that concept, I say "MADE IN AMERICA" should also apply to American company jobs .... President Obama has stated that he wants to give tax breaks for companies that hire Americans ... I say that we make sure that the tax breaks go to American companies and NOT non American companies.....what do you say?

Thursday, May 21, 2009

Wednesday, May 20, 2009

H-1B Caps and Baseball

Here we are in the last days of May 2009, California has run out of money, the Governator threatens to release inmates, police, firemen, and teachers because there's no more paycheck funds. Will the last one out please turn off the lights?

Today I would like to comment on an 11 May 09 (information week) article entitled "What if Major League Baseball Had H-1B Caps?" In this article credited to "Rob Preston, editor in chief of information week, suggests that if Major League Baseball had (American only) restrictions on recruitment then the quality of the baseball game would "become second-rate league in no time". Guess he has a point ... at least if we're talking about baseball, an entertainment gig. If someone from Cuba, Russia, or whatever is a better sports talent then any one we can find here, then why not hire that player? But wait.... again, we are talking about entertainment here not about people who live normal lives seeking a regular paycheck and paying bills. The way I look at this logic is ... if we just focus on sports there's a big difference between hiring someone for a baseball team and providing American job opportunities.

In alignment with my premise that the "greed factor" ( manifesting as a focus on cheaper labor and favorable tax advantages) originally drove corporate America to outsource jobs and manufacturing to other countries. The result of that action, as I have supported in this blog, is that, compared to the American workforce, H1-B resources have had GREATER opportunity for education, training, and job security resulting in a more QUALIFIED H1-B force ! See what I mean? This is not about "talent" ... this is about developing a long range plan to provide an American work force the opportunity to develop skills through education and actual job experience. This is about undermining the greed factor presented in these writings and changing the tax laws and profit incentive that encourage the outsourcing of jobs. This is about having a long range program for encouraging more young Americans to get into math and science at an early stage. This is about motivating and preparing an American workforce that will be competitive and supportive of a vibrant American economy. If this country does not promote this positive environment for education, training and job security for an American work force, where do these "qualified" people come from?

Concluding his article, Mr Preston says " So let's have a sensible H-1B visa process that brings in what we need and gives them a chance for citizenship. It enriches our country and economy". In this dark economic time inviting more H-1B sources to become citizens? Huh ? I have a contrasting opinion. Why not provide an American culture that is "employee friendly" and give American citizens a better chance to enrich their country and economy? Regarding Mr Preston's conclusion, I invite any of my readers to ask the following question:

What defines a "sensible" H-1B visa process?

Play ball !

Monday, May 18, 2009

Is offshoring to blame for the slow job growth in the U.S. economy?




And the beat goes on.... In the process of defining the lessons of history here are a couple of views supporting history and lesson's learned:

1. First quote is credited to the American philosopher, poet, literary and cultural critic, George Santayana who said :

"Those who cannot learn from history are doomed to repeat it".

2. Second quote is from Ambrose Bierce, a colorful American writer saying:

HISTORY, An account mostly false, of events mostly unimportant, which are brought about by rulers mostly knaves".

As you all know by now, this blog supports the concept that America is now experiencing an economic shakeup, not experienced since the Great Depression. The perfect storm of corporate greed, a rather static tax system that has "encouraged" American companies to search for offshore tax breaks, and the resultant outsourcing of American jobs, has created a toxic economic effect on this country. The loss of these American jobs, an anemic economic system, the additional loss of incentive for corporations to invest in training their employees, and an education system that is giving pink slips to educators just starting their careers, is cause for concern about the state of our nation.

For today's discussion, I refer to an article written in 2004 by a Sharon Otterman and found at http://www.cfr.org/publication/7749/trade.html . In this article just four years ago she writes:

===================================
Why do economists say outsourcing is good for the economy?

Many economists argue that outsourcing is just another form of free trade, which increases wealth in the economy. They say that employing workers at lower cost allows U.S. companies to be more efficient and productive, permitting them to create the same amount of goods with fewer resources. In turn, this lowers the price of the goods in the United States, strengthening U.S. companies and freeing workers for other tasks. The savings allows U.S. companies to stay afloat and expand in a highly competitive global market, says Jagdish N. Bhagwati, the André Meyer senior fellow in international economics at the Council on Foreign Relations and the author of the recently published "In Defense of Globalization." "Outsourcing is not destroying American jobs. These jobs are going anyway, because otherwise the goods would be too expensive to produce" and the companies that make them would no longer be competitive".

==========================

For today's relevant question, I would like to get your thoughts on the previously mentioned quote:

"Outsourcing is not destroying American jobs. These jobs are going anyway, because otherwise the goods would be too expensive to produce" and the companies that make them would no longer be competitive".

1. Is outsourcing really making American companies more competitive? Did you notice that the quote was presented as the view of "economists" ? The very ones that ended up feeding, like vampires, on the shady economics that brought America to it's knees in the last few years.

2. Any thoughts on the fact that if a person does NOT have a paycheck coming in, does a lower purchase cost have any relevance?

* Of course, the credit card companies would have a predictable answer to this question. Meantime share your thoughts on this subject ? Regards

Monday, May 4, 2009

Obama riles high-tech exec over outsourcing



BULLETIN! EXTRA EXTRA !

Well Well ..... looks like something has hit the fan ! Right on subject, here's a bit of todays's news for your enjoyment.

------------------------------------------------------------------------
Ref: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/05/04/BUF817D164.DTL

"Carl Guardino usually comes across as an amenable, mild-mannered Silicon Valley executive. But not on Monday. Not when he watched President Obama promising to end overseas tax breaks for U.S. companies that "create a job in Bangalore, India, (rather than) one in Buffalo, N.Y." Guardino, CEO of the Silicon Valley Leadership Group, angrily described Obama's language as "not only discouraging, but divisive." The president's implication that companies such as Cisco Systems and Hewlett-Packard merely "ship jobs overseas," and are being rewarded in the bargain, came as a shock to Guardino, who otherwise described the president as "brilliant and respected by so many in the tech sector who are counting on the administration as their ally." Indeed, Obama's proposal to limit U.S. companies' ability to defer paying U.S. taxes on offshore earnings does put Bay Area companies doing a lot of business overseas directly in the crosshairs. "It would adversely impact our ability to invest and grow our business in the (United States) and to compete against our foreign competitors," said a spokesman for Cisco. "

Check website for continuation of this article ... -----------------------------------------------------------------------

Four questions:

1. Anyone out there with an opinion on foreign tax breaks for American corporatons?

2. Would it be bad for corporate America if offshore tax advantages were eliminated?

3. The article suggests that foreign investment tax breaks allows favorible competition with foreign corporations. Not sure what that really means... do you?

4. Am I missing something here? Given Guardino's quote "adversely impact our ability to invest and grow our business in the (United States)" What does this mean? We can't invest in the United States (and American jobs) unless we invest in offshore tax breaks?

The Dangerous Prejudice Against Outsourcing?




Today's "Anonymous" comment discussed President Obama's plan to tax companies that outsource American jobs and give tax breaks to companies that hire Americans.. A recent comment presented in this blog questioned whether new tax laws would really be positive for the American job market and the nation's economy. Especially, would Obama's new tax laws be a positive for the many technology people who have lost their jobs to outsourcing ? I say that nothing will change until the "greed factor" mindset is offset within the corporate American market.
Supporting my position I would like to reference an article from the 30 Mar 09 magazine "Information Week" titled "The Dangerous Prejudice Against Outsourcing". This article was written by Bob Evans who is described as a senior VP and director of Information Week's Global CIO unit. Mr Evans says "When CIO's employ outsourcing to remain competitive and create new customer value, the outrage industry calls it anti-American and screeches about the loss of our jobs". This seems to me to be a common response from corporate American executives who have lost sight of the big picture involving the motivation of "innovative" Americans who never have/had a chance to focus their talents in the local job market (especially technology) because of outsourcing. In fact, I believe that many young Americans that should be encouraged to follow a career in technology are forced to look at other career paths that offer more future job security. Consequently, I believe that Mr Even's mindset (as suggested by the previous quote) creates the illusion that we need to outsource American jobs because we can't find innovative people here. Mr Evans further supports his outsourcing position by suggesting that "CIOs are being asked to squeeze costs while keeping alive innovative projects that will lead to competitive advantage when the global economy improves". Notice that he does NOT mention when the "American" economy improves? Is there some misplaced priority here? Finally, I am suggesting that president Obama's tax changes will hit the "virus greed factor" mindset in the pocket book and will be a wake up call for corporate America to adapt a new relationship with employees as people rather than financial objects. I invite anyone who agrees or disagrees with me to engage in dialog.

Thursday, April 23, 2009

Jobs, Economy, and America's Outsourcing Wake Up Call




So here we are in the spring of 2009 where flowers are blooming and American jobs are dying. One gift that time has given me is the ability to look back at mistakes and ...sometimes... learn from them.

As one who started out in technology programming machines that are now in the "Computer History Museum" ( located in Mountain View, California), I can remember when American ingenuity and American innovation had the romantic endorsement of our culture to follow the motivating words of the old Star Trek introduction narrative... "To go where none have gone before". In this case, the early technology pioneers were romantic figures that dared to tame an unknown world of data by capturing information and making sense of that collection beyond just a calculation at the bottom of a report. The modern Silicon Valley "was" identified as a center of technology innovation because our culture encouraged creativity and thinking outside the box at that time. Alas, I believe our culture is losing that aspect of creativity as jobs today have been lost to the outsourcing trend.

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* For purposes of clarification note that, according to the U.S. Citizenship Immigration Service the "H-1B visa program" referred to in these reports is defined as follows:

"U.S. employers may employ foreign workers with specialty occupations that require theoretical or technical expertise in a specialized field and a bachelor's degree or its equivalent. Typical H-1B occupations include architects, engineers, computer programmers, accountants, doctors and college professors. The current 2009 annual cap on the H-1B category is
  • General Quota - 65,000
  • Advanced Degree Quota - 20,000
  • Chile and Singapore - 6,800 ( from 65,000)
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In my ongoing discussions I will especially focus on how the outsourcing of American jobs has caused a reduction in American technical expertise and greater dependence on foreign workers. I want to point out that the very skills that define the need for foreign workers are the same skills and training denied to American workers. After all, why train an American when a foreign worker is cheaper? In addition, I want to establish that corporate America's outsourcing direction has been validated primarily by such motives as greed, subservience to share holders, increased profit margin at any cost, and avoidance of federal taxes. I am suggesting at this time that the carrier host for what I call the "greed virus" has been spread by this job outsourcing process.

Given the current economic crisis in this country, the "greed virus" infection appears to have spread to other sectors of the American business environment such as banks and credit card predators. This "infection" has also allowed corporate America to force wages down within the IT market and (given that IT jobs have been at risk to outsourcing) has caused a drop in students seeking computer science as a career path. The drop in computer science career interest, of course, means that more dependence will fall to the outsourced resources. Something wrong with this picture?

Could it be that the price of cheap foreign labor and a business culture that continues to overlook the importance of a respectful relationship between companies and employees has partly caused our current economic crisis? In this report, I have focused on technology because I personally know many technology people who have lost their jobs ( and expertise ) to the outsourcing process. *

I now suggest that outsourcing American jobs (logically based on greed rather than a trusting relationship with employees ) has acted very much like a viral infection creating an adversarial relationship between employees and employers. This has resulted in a breakdown of our national economic vitality. I will later be saying more about the "outsourced virus", but for now, I invite other ideas and thoughts on the following questions for my next post:

1. How should America resolve this breakdown of trust and respect between employees and employers?

2. How will this country regain its economic health... both in the technology field and the overall American job market?

3. Do you believe there's something wrong with the H1B visa quota math?

4. Do you you think that more H1B visa permits should be allowed in this country?

* As a footnote outside of the technology focus, I believe we can use, as a dysfunctional example of corruptness, that the "greed virus" has also infected the integrity of our banks and related credit card companies.

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