Indian Offshore Outsourcers Start Propaganda Campaign, Funding Elections to Get Your Job

the tokensIn a backdrop of election 2010, we have more spin. NASSCOM, the India offshore outsourcing industry is starting a media and public relations campaign to get your job.

India’s top tech firms, along with Nasscom, are lobbying harder on Capitol Hill and are set to launch a public campaign on hiring more local staff in the US as political rhetoric against offshoring of IT and back office jobs reaches an all-time high ahead of the US November elections.

Hiring Americans is not what they will do in reality. Instead they will contract or hire a few token Americans to point to as evidence they are not committing global labor arbitrage. Labor arbitrage, or squeezing workers for profits, is the entire business model of these Indian body shops.

These same offshorers are buying our elections and controlling our Congress.

Bangalore-based Wipro spent $33,000 as lobbying costs in Q2 this year in the US. Chennai-based Cognizant has spent a whopping $320,000 in lobbying this year.

Now guess which party is completely in their pockets? Republicans.

Some of the intense lobbying and other initiatives are already bearing fruit. Last month senate Republicans defeated a bill aimed at taxing American multinationals moving services and manufacturing jobs to cheaper overseas locations such as China and India.

Look at how intensely NASSCOM is out to defeat Congressional action to stop or curtail offshore outsourcing. The bill was only 7 Senate votes short, but now, with this 2010 election, it appears NASSCOM and the U.S. Chamber of Commerce will win. Any Congressional representative who steps out of line against these corporate offshore outsourcing lobbyists will lose. Congress has tried (including Chuck Grassley, a Republican) many times to get something done on labor arbitraging foreign guest worker Visas. Every time they are beaten down by other corrupt members of Congress.

Offshore Outsourcers have hired a former Bush administration official as their Benedict Arnold lobbyist:

Tata Sons currently employs The Cohen Group, run by William Cohen, ex-secretary of Defense in the George W Bush government.

How intensively can lobbyists control our media? Cohen got an Wall Street Journal Op-Ed and a time slot on CSPAN. Yes, our supposedly government public TV source, to spread his purchased lie drivel.

We already know the U.S. Chamber of Commerce, along with NASSCOM, right now, are trying to buy the 2010 elections and in spite of how corrupt Democrats are, you ain't seen nothing if the GOP gains power. These are the people behind them.

Notice that the Indian offshore outsourcing industry is $50 billion. That's how big they have gotten off of global labor arbitrage.

So, even though these Indian Body shops are operating in the United States, do they hire Americans? Answer, not on your life. From Infosys's SEC 20-F form, dated April 14 2010:

As of March 31, 2010, the majority of our technology professionals in the United States held either H-1B visas (approximately 8,900 persons, not including Infosys BPO employees or employees of our wholly owned subsidiaries), which allow the employee to remain in the United States for up to six years during the term of the work permit and work as long as he or she remains an employee of the sponsoring firm, or L-1 visas (approximately 1,800 persons, not including Infosys BPO employees or employees of our wholly owned subsidiaries), which allow the employee to stay in the United States only temporarily. Although there is no limit to new L-1 visas, there is a limit to the aggregate number of new H-1B visas that the U.S. Citizenship and Immigration Services, or CIS, may approve in any government fiscal year which is 65,000 annually. In November 2004, the United States Congress passed a measure that increased the number of available H-1B visas to 85,000 per year. The 20,000 additional visas are only available to skilled workers who possess a Master's or higher degree from institutions of higher education in the United States. Further, in response to the terrorist attacks in the United States, the CIS has increased its level of scrutiny in granting new visas. This may, in the future, also lead to limits on the number of L-1 visas granted. In addition, the granting of L-1 visas precludes companies from obtaining such visas for employees with specialized knowledge: (1) if such employees will be stationed primarily at the worksite of another company in the U.S. and the employee will not be controlled and supervised by his employer, or (2) if such offsite placement is essentially an arrangement to provide labor for hire rather than in connection with the employee's specialized knowledge. Immigration laws in the United States may also require us to meet certain levels of compensation, and to comply with other legal requirements, including labor certifications, as a condition to obtaining or maintaining work visas for our technology professionals working in the United States.

Infosys has 113,800 employees worldwide, and approximately 22,700 outside of India. In the United States their total employee roster is 12,000, reported by the press. Note how Infosys does not publish the employee breakdown per country. Regardless, this means that in the U.S., almost all Infosys workers are foreign guest workers, or about 1300, potentially are not on a guest worker Visa.

Within Infosys SEC filings are many explanations on how they squeeze labor costs, not just in the United States, but also in India itself. Beyond cheap labor, another reason corporations offshore outsource to India is it's judgment proof, a kind of a Cayman Islands for lawsuits.

The United States and India do not currently have a treaty providing for reciprocal recognition and enforcement of judgments (other than arbitration awards) in civil and commercial matters.

While Indian offshorers try to hide employment specifics, they do refer to legislation which would restrict offshore outsourcing. These bills they vehemently oppose to the point they list them on the SEC filings, are actually bills on immigration, specifically H-1B and L-1 guest worker Visas. Foreign guest workers, immigration and offshore outsourcing are considered duals of each other. If they cannot offshore outsource the job, corporations bring cheap labor in instead. From Wirpo's 20-F form:

A majority of our personnel in the United States hold H-1B visas or L-1 visas.

In 2007, Tata Consultancy had more 10,843 workers in the United States. Only 739 (9%) were Americans.

The bottom line here is these companies are not going to hire Americans. They are out to defeat any legislation which restricts offshore outsourcing or bringing in foreign cheap labor. They might hire a few token Americans for some nice photo ops and press releases, but that's it.

Their entire business model is labor arbitrage, literally spelled out in their own SEC filings and they have no intention of changing that business model, regardless of the spin and lies and media buys they make.

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Comments

Chennai-based

Chennai-based Cognizant...wrong.

http://en.wikipedia.org/wiki/Cognizant_Technology_Solutions

Cognizant (NASDAQ: CTSH) is an American multinational IT services and consulting corporation headquartered in Teaneck, New Jersey, United States.

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Cognizant, offshore outsourcer, 75% of employees in India

Cognizant is a notorious user of H-1B, L-1 and offshore outsources. Here is an article about the DOL forcing them to pay back wages to H-1B workers.

Chennai is a large offshore outsourcing center. They are, de facto, an Indian body shop, regardless of headquarters incorporation.

Source: Wall Street Journal.

That said, it's not just India companies who labor arbitrage. HP, Oracle, Cisco, Microsoft, the list is quite long, of U.S. companies who do the same thing. Displace U.S. engineers, U.S. techies for H-1Bs or move the project offshore.

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Doing Busioness with the Red-White-and-Blue Coginzant

I have had many dealings with Cognizant. The most striking was the discovery that their products for the insurance industry rating systems do not work, at all. One of the favorite ploys Cognizant uses is the pretense of hiring on-shore domestic IT workers. The recruitment process goes like this;

1.Call an on-shore resource about a position.

2. Engage in a quick soft-ball tech interview.

3. Tell the on-shore resource about his qualifications.

4. Send the candidate to the HR department.

5. Have HR explain that Cognizant can pay about 60 percent of going rates.

Sorry. Another variation is the game of finding out what the candidate makes so the offshore candidates who have been pre-selected and set up for the job
can cinch the position with a low-ball bid.

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Burton Leed

we need EEOC based on citizenship, at least perm+

Don't waste your time with places like that frankly. It's going to hurt your self esteem for one of the favorite tricks of "tech" is when they are brazenly discriminating, claim someone doesn't "have the skills". Seen that, witnessed it many a time. If you see a corporations with no grey hair except executives, see a corporation with no women technical professionals, no black people, ....the bottom line is they are discriminating. While the percentages of Blacks, women, etc. are low in tech, they are there so a division of 1000 should have at least 3 women as an example in their R&D departments.

But this entire business model of labor arbitrage needs to be wiped out, period. I'm sorry but the infamous worker squeeze needs to go and the focus on creating real products, real value, real innovation needs to stay.

It's no surprise to me that so many tech contracts fail, are a waste of money, buggy and so on with mentality.

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EEOC Will STOP the Discriminations Against Americans

If a discrimination lawsuit wins against indian companies that openly discriminate against Americans that will make the playing field even. These companies have interview panels of over 80 percent indian with an intent of NOT passing/hiring a local candidate during the interview. We should start suing them, you can look at the posting at www.techinsurgent.com for the step by step process.

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India, Inc.

What a great article!

Aren't there laws against foreign entities giving money to U.S. politicians? Why do we continue to permit the foreign lobbying of our government? In Japan they even have media laws that say no more than 5% of media ownership or even content can come from foreign sources.

We need to boot all these parasite Indian compqnies and their Indiot slave laborers out of the USA. This is what's wrong with our economy: as the other poster said, it's just a big money grab - they aren't producing anything or innovating.

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What's wrong with the economy

If you want to really know what's wrong with the economy, just take a look at this:

Companies ruined or almost ruined by India, Inc:

Adaptec - Indian CEO Subramanian Sundaresh fired.
AIG (signed outsourcing deal in 2007 in Europe with Accenture Indian frauds, collapsed in 2009)
AirBus (Qantas plane plunged 650 feet injuring passengers when its computer system written by India disengaged the auto-pilot).
Apple R&D CLOSED in India in 2006
Bell Labs (Arun Netravalli took over, closed, turned into a shopping mall)
Boeing Dreamliner ES software (written by HCL, banned by FAA)
Caymas - Startup run by Indian CEO, French director of dev, Chinese tech lead. Closed after 5 years of sucking VC out of America.
ComAir crew system run by 100% Indian IT workers caused the 12/25/05 U.S. airport shutdown when they used a short int instead of a long int
Dell - call center (closed in India because Premji's conmen don't even know how to use telephones, let alone computers)
Delta call centers (closed in India because Premji's conmen don't even know how to use telephones, let alone computers)
Fannie Mae- Hired large numbers of Indians, had to be bailed out. Indian logic bomb creator found guilty.
GM - Was booming in 2006, signed $300 million outsourcing deal with Wipro that same year, went bankrupt 3 years later
HSBC ATMs (software taken over by Indians, failed in 2006)
Intel Whitefield processor project (cancelled, Indian staff canned)
Lehman (Spectramind software bought by Wipro, ruined, trashed by Indian programmers)
Microsoft - Employs over 35,000 H-1Bs. Stock used to be $100. Today it's lucky to be over $25. Not to mention that Vista thing.
MIT Media Lab Asia (canceled)
PeopleSoft (Taken over by Indians in 2000, collapsed).
Qantas - See AirBus above
Quark (Alukah Kamar CEO, fired, lost 60% of its customers to Adobe because Indian-written QuarkExpress 6 was a failure)
Skype (Madhu Yarlagadda fired)
State of Indiana $867 billion FAILED IBM project, IBM being sued
State of Texas failed IBM project.
Sun Micro (Taken over by Indian and Chinese workers in 2001, collapsed, has to be sold off to Oracle).
United - call center (closed in India because Premji's conmen don't even know how to use telephones, let alone computers)
Virgin Atlantic (software written in India caused cloud IT failure)
World Bank (Indian fraudsters BANNED for 3 years because they stole data).

I could post the whole list here but I don't want to crash any servers.

This is about more than $ and economics - this is about conquest of the western world. We had better wake up and fast.

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Are you saying that AIG's

Are you saying that AIG's collapse was due to the outsourcing of some IT jobs to India???? So it is not because of any bad lending policies, malpractices and outright fraud by AIG?
Fannie Mae failed not because of bad policies but because of Indian back room software engineers?

Indians are at fault for Vista? MS was never known to produce the most robust OS, from Win93 and before.
GM failed because of a 300million dollar outsourcing deal and not because of it makes junk, and always made junk?

One could reel off a huge list of companies that failed long before outsourcing. Many of the companies listed failed because of not being nimble enough in fast changing tech market.

Most of the decision making power is still in American hands in American companies. Most of the key decisions on software architecture and design are still made by Americans. Indians have for the most part taken over jobs lower down the food chain.

You must be a poorly educated, over paid, disgruntled techie, who cannot stand up to a little competition.

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hey not ok on personal insults on EP

I'm sorry, we're all fresh out of being a platform for personal insult and attack.

People you can make your points, and assuredly I will not say AIG was the cause of H-1Bs, as far as I am aware no H-1B was being designing CDOs and CDSes, although Vista, uh, gotta little news fer ya....

But regardless, make your points without personal insult and attack.

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What Asians are really doing to Americans

This is what is really going on in corporate America: Asians deliberately keeping Americans out of the economy.

-------- Original Message --------
Subject: Sr. Electrical Engineer Position available @ Oplink
Date: Mon, 13 Oct 2003 10:40:35 -0700 (PDT)
From: Julie Koo
Reply-To: Julie Koo Julie.Koo@Sun.COM

------------- Begin Forwarded Message -------------

Date: Mon, 13 Oct 2003 08:43:52 -0700
From: Sabrina Chan
Subject: Sr. Electrical Engineer Position available @ Oplink
To: chinatown2000@sun.com, indians_ca@sun.com
MIME-version: 1.0
X-Accept-Language: en
Original-recipient: rfc822;chinatown2000@sun.com

Hi,

The company my friend works at is currently looking for a Senior Electrical
Engineer. If you know any qualified applicants, please have them send their
resume directly to: trinal@oplink.com.

Attached below is a copy of the job description. Oplink is a telecommunications
company.

Thanks”

* * *

Note the names of the 2 email groups she sent it to:

indians_ca@sun.com

and

chinatown2000@sun.com

Just another tactic jealous Asians use to lock Americans out of the job market in the U.S.

As usual, you're only qualfied if you're Asian. Americans need not apply.

Yet Asians yell and scream that Americans "can't compete".

It's not a matter of Americans not being able to compete - only of not being allowed to.

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The Real India

From: "Rajesh Kumar Ramachandran (LinkedIn Messages)
Subject: Listen to me Asshole!!
Date: Wed, 19 May 2010 20:49:20 -0700 (PDT)

LinkedIn

Rajesh Kumar Ramachandran has sent you a message.

Date: 5/19/2010

Subject: Listen to me Asshole!!

Now listen carefully to me asshole.. dont just bark around in the corner like a rabies stricken stray dog about your pathetic views about politics and jobs. If your insecure about your skills and abilities thats your fucking problem not Indians or any other politicians.. Well you want me to provoke you well then hear this, we are gonna take all your jobs away.. we gonna make sure that you dont even have money to buy shit and eat, we gonna take evrything thatwas yours.. we gonna drape the Statue of Liberty with a saree (you dont know wahta saree iis, well its a dress which Indian women wear).. now get your fucking stinking face out of here ASSHOLE!!!!!

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OUTSOURCING

CAPITALISM SUCKS, A LAW MUST BE VOTED RIGHT AWAY TO STOP ANY PRODUCT AND OUTSOURCING COMING FROM IN INDIA CHINA ETC... THE ENEMY TO AMERICAN SECURITY, IS NOT ALL QAIDA BUT THOSE FUCKING INDIANS AND OTHER SHIT THAT STEAL OUR JOBS. WE SHOULD HAVE NUKE THEM LONG BEFORE THOSE FUCKING BASTARDS.

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Indian I T Companies in USA

These Indian companies are really in the business of selling visas to desperate employees. India is a corrupt slum. The reasons for people wanting to escape are valid. However, when they arrive, they merely take advantage of the liberal laws of their new hosts, bring in their huge families, and very quickly replicate in the local community all the awful things they were trying to move away from. In fact, they werent trying to move away, they merely wanted to be at the top of the dung heap, not the bottom. So they replicate the dung heap, slums and all, then put themselves as they overseer. I T companies can recruit employees in India with the promise of a visa, but then they proceed to tie them to the company at low salaries, in effect making the employees pay a heavy price for the visas. The Indian execs and management all want to flee India, so of course they arrange their own visas. In years to come, when our children look around, they will wonder what the heck we were thinking allowing these people to colonize us. When they move into politics, we will really reap the whirlwind. They are racist, and from what I have seen very work shy, but able to play the system and take advantage of every rule.

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Indian I T Comanies in the USA

I agree with James on his key points. Their corporations and ours are exploiting their workers at the price of quality and integrity. Our only recourse is information and honesty, something their culture is completely devoid of and for that we should recognize and count our blessings. We can't get emotional and play into their passive aggressive hands as a society and as a professional demographic.

I've managed two large implementations and went along with the offshoring model of leveraging Indian firms for our resources, only to have failed completely once and had to trigger Americans to come in and save the day, and the other was a resounding cluster of mismanagement and half truths put forth by the Indians.

I think they are racist and very opportunistic, not to mention that they are incredibly dishonest and passive aggressive, they're masters and injecting themselves in organizations and playing one side (management) off on the other (domestic workers). I think they must have a template that they execute these tactics too. Serious.

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I would not buy Cisco stock.

I would not buy Cisco stock. It's an Indian company. 95% of the work is outsourced to Wipro. Think of Tata cars. that's the quality behind Cisco now. Pay 5 cents on the dollar for 95% of your employees/contractors, and you get shit.

John Chambers should be hung for treason. He should be forced to live in a shanty in Calcutta.

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