The Obama administration has offshore outsourced Obamacare. They made Accenture the lead contractor for the website healthcare.gov. The contract is estimated to be worth $90 million and the original contractor, CGI Federal, is out. We pointed out earlier that the failed Obamacare website was poetic justice as CGI Federal is also an offshore outsourcer of U.S. jobs. But now the poster boy for labor arbitrage, offshore tax havens, and bloated, often failed government contracts is in charge, Accenture.
Accenture is one of the biggest offshore outsourcers of American jobs. In 2012 they used 4,037 H-1B Visas alone and are ranked #5 in using foreign guest workers to displace U.S. workers and offshore outsource jobs. The H-1B Visa is known as the offshore outsourcing Visa. Offshore outsourcers use this Visa in a notorious method to displace Americans and technology transfer large projects to cheap labor nations.
In 2012, the 10 employers receiving the largest number of H-1B visas were all in the business of outsourcing and offshoring high-tech American jobs. Many of the jobs that went to H-1B workers should have instead gone to U.S. workers, but employers are not required to recruit them before applying for an H-1B, and can even replace their U.S. workers with H-1Bs.
Accenture has more workers in India than any other nation. In 2012 they had 80,000 Indian workers, 35,000 in the Philippines and only 40,000 in the United States. In all probability, those tech jobs just awarded under this contract and paid for with U.S. citizen tax dollars are in India or being done by imported foreign workers from India on guest worker Visas.
Accenture, like most BPO offshore outsourcers, saves money by underpaying foreign guest workers they import. Typically they pay 25% less for their imported employees than the prevailing wage for a similar United States citizen worker. In 2005, with the corresponding H-1B Visa good until Q1 2013, Accenture had 12,684 H-1B foreign guest workers earning an average of $53,042 per year. This is far less than the median $80,000 salary the same job responsibilities and skills required would fetch for an American worker. Accenture is so bad, they literally paid a foreign guest worker $25,113 per year with the job title, Chief Programmer. Typically chief programmers make six figures in America. Accenture is systemic in their labor arbitrage of United States citizens. Of their imported H-1B foreign tech workers in 2005, they paid 15.3% less than $40,000 a year and 40% less than $60,000. This is way, way below the kind of salaries one would see for a highly trained, college educated technology professional.
The situation is so bad they block out American contractors from obtaining government contracts by undercutting labor costs in addition to lobbying and campaign contributions.
The H-1B program harms employers that hire American workers. Domestic sourcing companies, such as Ameritas Technologies and Systems in Motion, are being penalized by U.S. Government H-1B policies because they are hiring American workers. Their competitor firms hire H-1B workers because they can be paid less than Americans.
The Obama administration has simply replaced one political corporate crony with another even bigger one. The amount of money these government contracts pay is absolutely obscene. The many failed and terrible government websites are proof positive government contracts are glorified corporate welfare. Worse than that, most Americans with technical skills can architect and design miles above superior quality, extremely efficient systems than what results from these various government contracts, if just given half a chance.
The corruption to obtain Obamacare contracts is beyond the pale and well documented. The Sunlight Foundation published a list of contractors making out like bandits on Obamacare. Accenture has already been awarded $2,136,175.98 just for the Affordable Care Act. Clearly pay to play is operating at full volume in D.C. To obtain these contracts, Accenture spent $5,590,000 in lobbying along with $1,188,644 in campaign contributions in 2012 alone.
In 2010 when Obamacare was being crafted, America was warned on offshore outsourcing of I.T. and health related technology. Accenture was one of those outsourcers pushing for the deal. They also managed to get into the White House with the most absurd public relations stunt. They claimed to retrain people whose jobs were sent to India. Get that? Americans have the skills and ability, yet they lose their jobs anyway. The very same outsourcers who caused such massive job loss then get into the While House policy room and push for government subsidies in order to retrain these same American workers. These corporate outsourcers in turn use this newly formed policy agenda as a public relations stunt to claim they are trying to help the American worker. The biggest insult of all of this is the U.S. taxpayer usually foots the bill for such corporate agenda rot such as this.
Accenture has quite a track record and not the good kind. They offshore outsourced taxpayer subsidized green jobs and were lined up to get those 2009 many contracts along these lines. They also have been fined by the DOJ:
Accenture LLP has agreed to pay the United States $63.675 million to resolve a whistleblower lawsuit, the Justice Department announced today. The lawsuit, filed in the U.S. District Court for the Eastern District of Arkansas, alleges that Accenture submitted or caused to be submitted false claims for payment under numerous contracts with agencies of the United States for information technology services.
Accenture has agreed to resolve allegations that it received kickbacks for its recommendations of hardware and software to the government, fraudulently inflated prices and rigged bids in connection with federal information technology contracts.
Accenture has also been a poster boy for tax avoidance. In the U.K., they have been under investigation In 2005 they even managed to get their own special law introduced in Congress to avoid paying taxes:
The Wall Street Journal reported July 14th that, as drafters of a technical corrections bill, you are contemplating including a special provision to shield Accenture from the anti-inversion provisions passed as part of last year's international tax law. Writing new rules with the specific purpose of allowing Accenture to avoid paying millions of dollars in U.S. taxes on its international profits would be extremely unfair to U.S. companies who pay their fair share. We urge you not to incorporate these controversial measures into the legislation.
The fight to keep offshore outsourcers from receiving federal contracts was lost in Congress, that's how bad the D.C. corruption is. Dodging taxes is now standard practice and Accenture was ranked 12th of the biggest corporate tax dodgers in 2010.
Accenture is incorporated offshore and has been the subject of many a Congressional hearing on inverted companies incorporated in Bermuda or the Caymans to avoid taxes. Just recently their profits rose another 16% on tax avoidance. This is after the public relations stunt to move company headquarters to Ireland from Bermuda in 2009, so clearly Ireland is just about as good as Bermuda in terms of national tax avoidance. Public relations stunts and corporate branding is something Accenture is big on. Not only did they change their name in the nick of time before the Enron scandal broke, they will do just about any media relations coup to avoid the truth coming out that they are an offshore outsourcer. Yet instead of a slam down on this company and all those like them, here we are in 2013 watching a company who represents everything wrong with America being rewarded a high profile government contract, littered with people's very personal and financial information to boot.
America is being eaten away from the inside out. We have a gigantic parasite killing the nation called legal corruption in Washington D.C. Yet another corporate campaign donor manages to receive a multibillion dollar contract. Unfortunately this is standard fare in Washington. It should be no surprise America's entire middle class is becoming extinct. America's politicians sold 'em out for campaign cash and other legal forms of bribery.