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  • IBM Moving Skilled Jobs to India, China ...

    Everyone:

    I came upon this article while perusing Yahoo! and figured it might be of some interest to my fellow 'Poly posters. As per my usual practice, it's posted below in its entirety — contribute to this thread as you see fit afterwards.

    ***

    ARMONK, N.Y. — IBM Corp. plans to move up to several thousand skilled software jobs from the United States to India, China and other countries, which could amount to one of the biggest such actions yet in the technology industry.

    IBM documents obtained by The Wall Street Journal said about 4,700 programming jobs could be shifted overseas to save costs, a growing high-tech industry trend known as "offshoring."

    More than 900 people are already scheduled to be told of the move in the first half of 2004, while another 3,700 jobs have been identified as having the "potential to move offshore," the Journal said. IBM already has hired 500 engineers in India to take on some of the work that will be moved, the Journal reported.

    The division affected is IBM's Application Management Services group, part of Big Blue's huge technology services division. The IBM facilities where workers could be replaced include offices in Dallas, Southbury, Conn., Poughkeepsie, N.Y., Raleigh, N.C., and Boulder, Colo.

    IBM spokesman James Sciales said he would not comment on "internal presentations" but noted that most of IBM's work force, which now totals 315,000, has been overseas for years. Sciales also released a statement saying IBM expects hiring in the United States next year will match or exceed 2003 levels.

    While companies long ago began moving manufacturing jobs and other blue-collar work to Asia, big business is now increasingly shifting skilled work there as well. According to International Data Corp., foreign workers performed about 5 percent of information technology services for American companies this year, but by 2007, that share will grow to 23 percent.

    Often, the American workers being replaced are called upon to train their overseas replacements. The same will be expected of IBM employees whose jobs are being transferred, according to the Journal.

    In a speech this fall, IBM chief Sam Palmisano defended the practice of going to Asian countries for skilled labor, saying those nations not only offer lower wages but also have invested heavily in education and modern communications networks.

    He said the United States should respond with increased investments of its own to remain innovative.

    "China, India, South Korea and other rapidly developing nations are replicating the structural advantages that historically have made the U.S. the center of innovation," Palmisano told the Council on Competitiveness in Washington on Oct. 30.

    "We can't — shouldn't — regret improvements in other nations' competitiveness. Their people deserve to participate fully in the benefits of innovations."

    IBM shares were up 57 cents at $93.28 in trading Monday on the New York Stock Exchange.
    ***

    There are some quotes in particular that have my dander up. They are as follows:

    In a speech this fall, IBM chief Sam Palmisano defended the practice of going to Asian countries for skilled labor, saying those nations not only offer lower wages but also have invested heavily in education and modern communications networks.
    That's what it comes down too, folks: lower wages and less job protection.

    That crap about Asian countries investing more in their education and communication networks is just an attempt to deflect attention away from the fact that companies who relocate workforces to nations outside the Western world generally can get away with a lot more than they could at home when it comes to workers' pay and protections. Human resources are generally a company's No. 1 expense, and it saves big bucks when companies can pay less, offer reduced or no insurance and can fire employees at will with no recourse for those fired.

    And don't tell me that the United States hasn't invested in its education and communications networks. We're at the top or near the top when it comes to that. Tell me again: How many medical breakthroughs does the United States produce each year? Technological breakthroughs? Useful inventions? Ideas? A lot, that's what. So, IBM, just admit the real reason for going to Asia: lower wages and less job protection for the workers over there.

    He said the United States should respond with increased investments of its own to remain innovative.
    We're doing our part. Still, it isn't enough to keep companies like IBM from moving their workforces overseas. When it was the blue-collar jobs leaving, we were told that the United States would remain competitive in the white-collar jobs. Well, now those are leaving, too. I guess that leaves us as a more service-oriented economy, and even that isn't guaranteed (just look at all the customer service jobs hosted in India). Unless by "service" they meant fast-food jobs.

    "We can't — shouldn't — regret improvements in other nations' competitiveness. Their people deserve to participate fully in the benefits of innovations."
    You know what? He's right! We shouldn't begrudge India and China for improving their abilities. What we should begrudge, though, are the companies that use that as a cover to move jobs over there. It's just "icing" covering the cake, which is the real reason for moving the jobs: lower wages and less job protection.

    Until that changes — and I really don't think India and China have any reason to bring about change in that area, let alone IBM — the United States and other Western countries are going to be hard-pressed to keep their own well-educated citizens gainfully employed. Well, unless they're willing to take cuts in pay, cuts in job protection and less employer-sponsored insurance. Then they'll be competitive!

    Anyway, gotta run off to work, where my employer still values me!

    Gatekeeper
    "I may not agree with what you have to say, but I'll die defending your right to say it." — Voltaire

    "Wheresoever you go, go with all your heart." — Confucius

  • #2
    Don't forget the 10 year tax free holiday India gives companies that take jobs from America. All of these predatory trade practices other nations are engaged in are not really helping us.

    Of course the alternative argument is that if we could just get rid of workers comp/clean air,water,soil/welfare programs/etc then we could compete is false as far as I'm concerned.

    Comment


    • #3
      Par for the course. I'm not surprised Republicans are okay with this. What I want to know is when will the Democrats start raising hell about these jobs going offshore? Clinton democrats like Kerry don't mind, I know. But I would think Dean will make an issue of this as his campaign progresses...

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      • #4
        Looks like you IT'ers are going to have pack your bags for Asia if you want a job.
        http://monkspider.blogspot.com/

        Comment


        • #5
          BFG9000, the democrats have mentioned the trade agreements, but they are trying to get their base now, expect more about this after the primary. As for who would be for/against it, Republicans have been protectionists historically, only Nixon,Bush I and Bush II haven't been.

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          • #6
            That crap about Asian countries investing more in their education
            Oh PLEASE! Asians are a WHOLE LOT SMARTER than most Americans. Partially because the culture promotes it But don't even give me the "No they aren't!" line...I mean, the gap between American intelligence and Asian intelligence is astonishing.

            A lot, that's what.
            Yes, and a lot of those tend to come from...immigrants!!! But then again, we all know the US is known for it's shutborder policy

            I do hope more jobs get exported to these great nations. They need it, and quite franky we don't.
            Eventis is the only refuge of the spammer. Join us now.
            Long live teh paranoia smiley!

            Comment


            • #7
              cheeper prices, employment in developing countries, better services. What is the problem?
              eimi men anthropos pollon logon, mikras de sophias

              Comment


              • #8


                The rant doesn't match exactly to this topic, but isn't too far off either and it pretty much states my opinion about this:

                If you lose your job to an immigrant, it's probably because he or she was willing to work harder for less money. Don't want to pay them full wages? Then don't hire them. If they do equal work, then they deserve equal pay. It's just that simple, and I'm not going to sit back like every other racist piece of **** *****ing about having to work harder because there's a little competition for my job, immigrant or otherwise.
                Replace the word "immigrant" to a "foreigner".

                It's funny that nobody seemed to give a **** about the working conditions (except Ned and a few others in the thread he made, but it seemed to concentrate after the first page to "is China a communist state" -arguement) in China BEFORE they started threatening the employement situation of the western countries.

                Asians are a WHOLE LOT SMARTER than most Americans
                Americans are a whole lot smarter than most Asians. Point?

                cheeper prices, employment in developing countries, better services. What is the problem?
                Agreed.

                Comment


                • #9
                  cheeper prices, employment in developing countries, better services. What is the problem?
                  Nothing!
                  I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

                  Comment


                  • #10
                    there is alot of this argy bargy going on in the UK atm to, I just don't get it. For example, people have complained about culture rape because Indion Call CEnter workers have to ask about the weather and soap operahs.

                    If a call center opened in Shefeild, creating thousands of jobs, on the condition they asked weather it was sunny in mysore, would they feel they have some how had their culture 'raped?'
                    eimi men anthropos pollon logon, mikras de sophias

                    Comment


                    • #11
                      What kind of chicken **** ***** is afraid of competition? Can't get a job because you lost out to an immigrant? Well TOUGH ****. Nobody wants to pay you for your half-assed work if someone else can do it better.
                      I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

                      Comment


                      • #12
                        Hey, guess what, whiners? There's a reason why they can get away with moving jobs to China, India, Swetshopistan, and the like. It's called CAPITALISM. If a guy down the street can do work for half the wages that your neighbor is doing, why should you keep your neighbor? You can fire your neighbor and hire the guy down the street. And if you're a good, moral businessman then you'll pass the savings on to the consumer.

                        (It's too bad that IBM won't do the latter).
                        meet the new boss, same as the old boss

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                        • #13
                          Capitalism isn't the problem it is simply the obvious motivation. The problem is overly laxed laws which open markets without requiring environmental and worker protections. If the rich countries, who control the world's markets, all agreed to exclude the products from countries which don't provide adequate protections for workers then the other nations would have no choice but to agree to provide these protections for their workers.

                          Let’s have open markets but let’s require fair trade where everyone’s basic health and welfare is protected via environmental and worker protection laws.
                          Try http://wordforge.net/index.php for discussion and debate.

                          Comment


                          • #14
                            It isn't my fault that the US doesn't require decency of India. Now, asking for that would be better than whining that IBM hates America and is shipping off jobs to Asia.
                            meet the new boss, same as the old boss

                            Comment


                            • #15
                              Originally posted by mrmitchell
                              It isn't my fault that the US doesn't require decency of India. Now, asking for that would be better than whining that IBM hates America and is shipping off jobs to Asia.
                              Why do you mention only India? Why not China?
                              http://tools.wikimedia.de/~gmaxwell/jorbis/JOrbisPlayer.php?path=John+Williams+The+Imperial+M arch+from+The+Empire+Strikes+Back.ogg&wiki=en

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