Obama's Offshore Outsourcing Corporate Tax Code Change has no impact on offshore outsourcing vendors

You're going to love this one. According to Ernst & Young, Obama's majorly hyped tax incentive he's planning on plugging, which gives an incentive to offshore outsource your job, all of those offshore outsourcing companies will not be affected in the least. Nice huh? All U.S. corporations have to do is create a separate business entity and then contract with that entity to offshore outsource your job.

Can you spell LOOPHOLE?

Domestic business process outsourcing (BPO) units providing services to the American companies will not be affected by the proposed decision of US President Barack Obama to discourage outsourcing by imposing taxes, said global consultancy firm Ernst & young.

GM offshore outsourcing U.S. jobs

Glad you supported GM getting U.S. taxpayer dollars? Want to see GM survive, prattling on how America needs an auto industry?

Instead we get this, GM plans to shift overseas production:

General Motors Corp. will shift more production of vehicles bound for the U.S. market to China, Mexico, South Korea and Japan, but will keep total imports at roughly one-third of all sales here.

In a confidential 12-page presentation to members of Congress, obtained by The Detroit News on Friday, GM said it will boost U.S. sales of vehicles built in those four countries by 98 percent -- or about 365,000 vehicles -- while shrinking production in Canada, Australia and European countries by about 130,000 vehicles.

Study Says Outsourcing Not Big Savings

There is a new study on offshore outsourcing I.T. contracts which says instead of saving money by labor arbitraging workers, the costs can actually increase by 20%.

While staff costs may be 40 percent lower in offshore locations, Compass research found these savings were undermined by a 60 percent drop in productivity in operations where the full lifecycle of application development has been outsourced.

"This means that the decision to migrate development, when you include additional management control, increased infrastructure spend, employee attrition, language, and cultural issues, can end up costing up to 20 percent more than current in-house operations," said the consultant group.

PC World:

Sallie Mae Brings Back 2,000 offshore outsourced jobs back to the U.S.

This is a piece of good news:

Sallie Mae said Monday that it will bring 2,000 jobs to the U.S. within the next 18 months as it shifts call center and other operations from overseas.

Sallie Mae even acknowledges that Americans need those jobs.

For all looking, they are in Reston, Virginia and these positions are call center, I.T. and I.T. support type jobs.

Obama Clueless on Offshore Outsourcing - Touts Corporate Talking Points

From an online townhall Obama claims:

Now, a lot of the outsourcing that was referred to in the question really has to do with the fact that our economy -- if it's dependent on low-wage, low-skill labor, it's very hard to hang on to those jobs because there's always a country out there that pays lower wages than the U.S. And so we've got to go after the high-skill, high-wage jobs of the future. That's why it's so important to train our folks more effectively and that's why it's so important for us to find new industries -- building solar panels or wind turbines or the new biofuel -- that involve these higher-value, higher-skill, higher-paying jobs.

IBM Fires another 5,000 - Offshore Outsourcing Jobs Right and Left

IBM is firing yet another 5,000 workers, offshore outsources their jobs and forcing highly skilled Americans to educate and train their cheap offshore replacements. In just the past 2 months IBM has victimized 10,000 workers in this manner. Meanwhile IBM is running an expensive ad campaign to get U.S. government contracts, particularly Stimulus money. That's right, your tax dollars.

Do we really want to award U.S. taxpayer money to a company who routinely forces it's employees to train their replacements only to be fired?

Alliance @ IBM has some details:

Obama's CIO Vivek Kundra Previous Close Employees Arrested for Fraud, Bribery

This is one hell of a story. One week after President Obama announced his new CIO of the United States, the FBI raided the very office where Kundra just held the position of CTO and arrested Kundra's former CSO and another former employee, for massive fraud and bribes.

D.C.'s top IT security official charged with bribery

Arrested this morning was Yusuf Acar, who currently is the District of Columbia's acting chief security officer; police said they found $70,000 in cash in his Washington home. Acar's annual salary is $127,468, according to court documents.

The second suspect arraigned on bribery charges is Sushil Bansal, CEO and founder of Advanced Integrated Technologies Corp. (AITC), a Washington-based outsourcing vendor that has won a number of contracts from the district's IT department.

IRS stops outsourcing private debt collection

Here's a good move, although it's more symbolic in terms of savings. IRS Stops using private contractors for debt collection:

So much for privatizing the federal government.

The Internal Revenue Service's decision this week to quit using debt collectors to dun delinquent taxpayers was celebrated by public employee unions as a pendulum shift after watching the Bush administration often opt for private contractors over federal workers to deliver government services.

From Senator Byron Dorgan's website:

IBM Lobbying in Press for Smart Grid Stimulus

I've been watching IBM on their media barrage trying to get Stimulus money for Smart Grid Technologies.

Don't Give it to Them.

Why would I come out so strongly against IBM as well as G.E. to get government money for a smart grid power distribution system?

It's really simple. IBM offshore outsources and displaces U.S. workers. Also, they seem to be going down hill on efficient and effective project deployment.

Alliance@IBM AFL-CIO affiliated union will tell you all about IBM's labor arbitrage practices. IBM even told U.S. workers to offshore outsource themselves.