be stopped and all the companies that are taking money from the Govt. should not layoff people in US. We Americans should work for more hours in order to compensate the cost that could be saved due to outsourcing.
US people should not clamor for cheaper goods at the cost of losing jobs in US. In other words, we people in US are bartering our jobs for cheaper goods. I would rather have a job and pay more for goods and in addition spend carefully than not having a job and having goods for cheaper price and in addition spending recklessly.
IMO, I think this is a basic step that US should take in order for the US economy to revive.
I heard 30,000+ could be announced this week. Tis the earnings season.
Always amazes me how stocks rise in price after "cost cutting." I wonder how many more companies are going to announce layoffs through March reporting of FY08 Q4 earnings? I wonder what percentage of Americans will be unemployed by March 31st?
US companies are paying around 50-60$ per hour to the outsourcing companies for software engineers, which comes to around $100-120K per year. Here US is not saving much and at the same time the engineers are not get paid all that money. It is just the middle men are eating $20-30 per hour per employee all in the name of outsourcing. SAP consultants are getting paid around $100-200 per hour and the US companies are paying this high renumeration to the Asian outsourcing companies. No wonder why Asian IT companies are growing at the rate of 100% year over year during the last decade, PATHETIC!!!
If US really wants to go for outsourcing then in the same way why can't they bring down the medical costs, which is more valuable and much more important for the nation.
I can live without a toy, furniture, large screen TVs, IPODs, et al, but cannot live without health insurance. What has US done to bring down the health insurance? NOTHING. Every year the health insurance costs are going up by few percentage points, probably more than the rate of inflation going up.
If we have dearth of doctors in US then why can't US get more doctors in H1B visas for short time. I meant get only top notch doctors from all over the world and get them trained here for at least 6-12 months or even more before they practice here at US.
This will certainly bring down the labor costs for the US companies, which means less of outsourcing jobs to other nations.
My point is let US take advantage of the low costs for the things that very important to Americans and are expensive here as well.
Some big percentage of medical costs are due to book keeping of the medical records and also due to attending calls to answer billing questions/claims.
For e.g., the other day I took my son to the dentist for 6 teeth feeling (all were very very small cavities). The dentist spent 1 hour and charged $960. If I had not got insurance then I would have got busted, paying a big percentage of my pay check. Why should it cost so much for just tooth filling? When I got in as a new patient, the dentist took almost ~30 x-rays, may be there was no need, but since the insurance covers so they take it. After two years I am eligible again for the new set of x-rays.
No medical insurance probably due to loss of jobs and see the current scenario of this nation in the link below:
Does this mean we also direct that all foreign companies that employ Americans here in the US must close shop and go home?
Companies like SAP, Siemens, Toyota, Honda, AXA, Aegon, USB, British Petroleum, RBS, Lenovo, etc, etc.
Any savings experienced by off shoring US jobs will be negated when these offshore countries wake up and see that US CEO’s are taking advantage of them same as they did with US citizens. It’s a ploy. These third world countries are waiting until US corporations get established then they will raises taxes and insist US corporations provide same benefits to their citizens equal to what the rest of the world receives. They will have US corporations by the balls. These countries are not a stupid as US CEO’s think they are.
Ever wonder why these countries have citizens that are willing to work for peanuts? It’s because these governments are corrupt and citizens are desperate. This makes for a very volatile environment. I would never allow control of critical functions of my business to be run in any of these third world countries. It would be a failure in the making. We are already seeing unrest in some of these countries. As seen elsewhere in the world, US interests are always the first targets when unrest breaks out. Do I want my business to be held hostage? No!
Savings from this off-shoring rarely get passed down to the Corporate Clients. It all goes to the CEO’s bottom line and bonuses. Corporate clients are paying premium rates for substandard services. In some cases Corporate clients don’t even realize that there critical data and processes are being sent and managed off-shore. You need to ask! Do you utilize off-shore resources in support of your business or mine?
You get what you pay for in this world. The people being recruited at these off-shore facilities are un-educated and do nothing but follow scripts. If it’s not in the script then sorry we can not help you. Already corporate clients are requiring that their services be provided from with the US. Why would a corporation set itself up for failure by having critical functions of there business being performed off-shore in third world countries where they have no control.
What has your experience been with off-shore business? Have you had to call with an issue? I myself do ‘not’ get a warm fuzzy when dealing with these folks. Most of the time my call gets disconnected. I was told this was their way of saying ‘sorry it’s not in my script’.
What is it going to cost US corporations to re-establish services within their home countries when they realize there is no savings and their clients are feed-up with substandard services? Will we end up having to bail them out too!
US Citizens: Research who you do business with in your daily lives. Absolutely refuse to do business with companies who have off-shored American jobs. Be vocal and express your feelings regarding US developed jobs and processes going to third world countries that have not provided any investment. They are getting our technology and processes for free.
Stop off-shoring our country now! Speak out! Refuse to do business with these companies that are undermining our economy. Contact them and let them know why you are not doing business with them.
Man, either you are biased or trying to prove your ignorance -
< Ever wonder why these countries have citizens that are willing to work for peanuts? >
Yes, they can work for less because they are living with less luxuries. They have small home, they have few toys, they do not have more expensive health care and education system. Their government does not have huge offense (War) budget..
<Savings from this off-shoring rarely get passed down to the Corporate Clients.>
Yes, corporations do not pass all the savings to their clients. Why they should as long as clients are getting services at the agreed cost. Do not forget globalization was initiated to increase corporate profitability..
<The people being recruited at these off-shore facilities are un-educated.. >
Man, look at your state university campus and see how many Asian professors are there. How many Asians students are doing PHD? Our US high schools have produce good ball players, so large percentage of them can not complete their college degree. In short Asians are better educated and they know that they have to study and work hard to survive. They do not have welfare system.
<What is it going to cost US corporations to re-establish services..>
A lot, if US company can not establish good team over there. Do you think US will be able to stop or cut globalization? If you do then you are dreaming. We have lot to lose if we scrap globalization..
<Absolutely refuse to do business with companies who have off-shored American jobs.>
May be there are some clients are there but not many. Most of the businesses are looking for the best price and service. How many contracts IBM lost because IBM have more than 100,000 developers in Asia and more than 10,000 contractors on H1-B in US? IBM is not alone here, HP, GE, Intel, EDS,,, are doing exactly same.
<top off-shoring our country now! Speak out! Refuse to do business with these companies ..>
Do you think you will ever be able to convince large number of US businesses and tax payers? We are American capitalists first and nationalists second.
Just be practical and let think how to cleanup our economic mess and how to keep our politicians accountable..
Hey DumbA$$ I have been doing that for the last 20 years while you have been doing the opposite. Now, I cannot afford to pay top dollar any longer because I am in survival mode. I can not afford luxury items like I used to, it is strictly a frugal lifestyle.
I know what is going on employees' mind. But you are barking at wrong tree.
One time I asked my manager, How many hours of work IBM expects from me? He replied "More than 40Hr/week". In short, it is some where between 40 & 280 hr/week.
IBM is not different than any other US corporation. We are in capitalist society where winner takes all. If you are in power and have control over the treasury then you can write your own pay check.
IBM management structure is like a virtual gang. All members are connected via several invisible threads.
"Respect for individual" is a joke. Once you cross one manager (gang member) then you may see your record flying all over in their managers' club. You cannot see these confidential remarks stored in your own file by your manager! (I think this is a classic point for a collective law suit).
Once I worked for an old IBM manager. Long time ago he had an executive position and had promoted several loyal young engineers to the higher positions. Few of them bypassed him and went way up in the chain and became his bosses. All of them followed IBM unwritten code of conducts and keep protecting his job even though he screwed up several projects and insulted engineers working for him badly. Some complained to the higher management but because of their complain, they were punished indirectly. At the end he retired with good package which common IBMer will never get.
So do not expect any change. IBM is a big capitalist company run by a complex management structure and relatively they are doing fine. So why do they have to change?
Some manager may get laid off but if he/she is one of their loyal member then eventually the person will be hired back in very short time.
If you are in your 50s then just stay there, keep your head down and wish "you will be there" next week. Outside is not good unless you have decided to be your own boss and ready to face tough competition.
Do not think that you will be able to change current IBM management structure....
Most IBM employees are working more than 50Hrs. If IBM is talking about work-life balance, then they will not be able to say work 60+ hours. They will be reducing or eliminate bonus based on current economic environment. Next, I suspect will be pay raise freeze only to the employee working 50+hrs, management will not be affected. What IBM needs to do is to reduce to compensation, salary and benefits of upper managements. Reduce the number of managerial levels and eliminate BUDDY system in management. After Lu's retirement there are many layers of managers now. Also, when manager decides to go back to non-managerial title/job, their pay should be reduced rather than getting inflated pay for reduced responsibility.
Top executives are interested in their bonuses and stock appreciation, it seems like they don't care about the economy. In addition the cost savings are neither passed on to the employees nor to the customers. In addition they are writing off huge amounts, see INTC showing just 4 cents profit for the Q, NT filing for BK et al.
If every manager runs their teams efficiently then I don't think US should go for outsourcing. Most of the companies are outsourcing to save costs and at the same time they are not managing the teams/employees efficiently in US.
I think no company in US should outsource more than 5% of its employees force. I think its time for making new policies.
Companies should not lay off employees, instead cut salaries and bonuses if a need arises, cut travelling expenses, ask employees to work for more hours.
I think you are mixing two different issues and believe that only US workers are smart and produce quality products. So first you must remove that misinformation. Asian workers are as good as US workers. Some time they work hard and are ready to go extra miles because they want our jobs. They have significantly low cost life style. They have low cost education and health-care system and they do not complain much if there is any imperfections in these services. That is why they can survive with lower salary.
Globalization concept was initiated by the US corporations. US tax payers and politicians were behind it. Our corporations thought that we will sale them very high cost products like computers, cars, air crafts, etc and will earn lots of $$. Now the table is turned. We lost the race. They learn and came up fast. In the beginning they took blue collar jobs, now they are picking up white collar jobs. In very short time you may see Asian CEO on US Corporations.
I understand that US working families are scared and do not see any way to recover. At present IBM is hiring more engineers and programmers in Asia to replace laid off US workers. This is a pure business decisions SAM have taken an IBM share holders love that. In short the globalization game was started by us and now it is killing us.
So let start discussions on how to cut our excessive budget deficits. How to educate ourselves. How to cut unnecessary education and health care budgets. How to keep our politicians accountable and more...