March 3, 2009
WashTech News
Citigroup recently announced that it is outsourcing all its IT business staff and services to Tata Consultancy Services (TCS), a large multi-national outsourcing company based in India with US corporate offices located in Cincinnati. Citigroup has placed the majority of its IT and R&D staff in the Cincinnati region in the past 5 years. It has provided documentation through the US Federal Courts lawsuits that it employs over 12,000 contractors where over 90% are H-1B and L-1B visa workers. American workers in Citigroup are going to be in jeopardy to be permanently displaced by H-1B and L-1B Tata workers.
In late 2007, Tata received an $18 million, 8-year tax abatement from Clermont County and the State of OH to relocate their US headquarters to OH and "create" 1,000 jobs in Clermont County within a 3-year period. Tata has not yet fulfilled the terms of the tax agreement to fulfill the state tax abatement - "their corporate HQ is only 30% occupied, parking lots are empty and the future expansion plan is in limbo. However, Citigroup moved its R&D and development to OH 5 years ago. This group is among all IT departments being outsourced to Tata, closing down its IT operations in Cincinnati/Northern KY and moving them to Tata US HQ in Clermont County.
Where are the jobs Tata negotiated with the state of OH in exchange for $18 million of tax breaks? Tata has internally transferred 450 jobs that already exist from Northern OH to Clermont County and was supposed to create only 550 new jobs to meet state tax abatement requirements. Tata claims these 550 "newly created" jobs will be high-level software development jobs but has not advertised them in the local and state community media. This means that OH state government financed up to $27,000 per job for Tata to create 550 IT jobs that are already there. The outsourcing deal with Citigroup that is under Fed Govt. review further implies that more OH jobs will be transferred to Tata and not be newly created jobs as the original state tax abatement implies. OH does not benefit when 1,000 jobs are retained in the state from Tata transfers to a total of $18 million for 8 years and no new jobs are actually created in the state.
BHO has pledged to stop giving tax breaks to companies that ship jobs overseas. Indian offshore firms, such as Tata, Satyam, Wipro, Resourcesoft, Megasoft, Infosys, Global Cynex, etc. here at home are worried that he might impose sanctions on foreign companies that discriminate against American workers whose exclusion from employment has been the goose that lays them the golden egg for unfair competition. They are meeting with BHO officials in March 2009 to make sure any job program he comes up with does not stop the white collar bleed to India and take away the one-sided benefits that have flown their way to date at American workers' expense.
We have to be vigilant that enemies of the American workers do not take over the BHO team. I have my doubts about the commitment of certain people in his team whom I consider as not committed to protect American jobs because they are so obsessed with "free trade." Sen. Gregg (then-DOC secretary nominee) comes to mind because he wants to raise the number of H-1B visas to 150,000. He is clueless if he bases his knowledge from the talking points of the GOP in their blind kamikaze support of free trade to exploit cheap labor. He parrots what Bill Gates (another corporate moron) who makes unsubstantiated and unproven claims that every H-1B visa creates 5 jobs for Americans. Only an idiot will make such a statement.
BHO has nominated Gregg to be a member of his team because he is Republican in the name of bipartisanship. It seems like BHO is a prisoner of old ideas (forget the big talk about change; talk is cheap). He is stacking his economic team with pro H-1B, anti-worker dregs from industry and WJC & GWB administrations, e.g., Larry Summers, Ron Kirk, Diana Farrell, etc. His position on the subject may have been written by industry. It's dishonest to claim change when you are renewing, repeating or perpetuating the policies of the past. Those of us who worked hard for his election are disappointed with these moves even though he is different from his predecessors. Maybe his opponents and critics are right that his "lack of experience" will cost us plenty. He has been in office for under 5 weeks, and he has already allowed these adversaries of the national interest and the average workingman to take over the direction of his administration. He may be cool under duress but is weak under in the face of the opposition; he may be articulate on the issues but words are meaningless if they don't help the average American worker.
What federal legal safeguards protect US workers from Citigroup for discriminatory hiring actions by outsourcing companies, such as Tata, when the Fed Govt.'s financial bailout assistance is provided to benefit the likes of Citigroup Financial? Tata has an established track record of not hiring US citizens for IT contracts and will not openly discuss this outsourcing concern with the news media. We have some of the best, if not the best, in their fields, whether it is manufacturing and engineering or literature and humanities. Just look at the number of American Nobel laureates every year. Our responsibility is with our graduates who are entering the workforce and workers who want to work in and move up their field. We owe nothing to foreign nationals!
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Foreign Companies Will Lie to Win American Contracts (Part IV)
Rawlein G. Soberano, Ph.D.Citigroup recently announced that it is outsourcing all its IT business staff and services to Tata Consultancy Services (TCS), a large multi-national outsourcing company based in India with US corporate offices located in Cincinnati. Citigroup has placed the majority of its IT and R&D staff in the Cincinnati region in the past 5 years. It has provided documentation through the US Federal Courts lawsuits that it employs over 12,000 contractors where over 90% are H-1B and L-1B visa workers. American workers in Citigroup are going to be in jeopardy to be permanently displaced by H-1B and L-1B Tata workers.
In late 2007, Tata received an $18 million, 8-year tax abatement from Clermont County and the State of OH to relocate their US headquarters to OH and "create" 1,000 jobs in Clermont County within a 3-year period. Tata has not yet fulfilled the terms of the tax agreement to fulfill the state tax abatement - "their corporate HQ is only 30% occupied, parking lots are empty and the future expansion plan is in limbo. However, Citigroup moved its R&D and development to OH 5 years ago. This group is among all IT departments being outsourced to Tata, closing down its IT operations in Cincinnati/Northern KY and moving them to Tata US HQ in Clermont County.
Where are the jobs Tata negotiated with the state of OH in exchange for $18 million of tax breaks? Tata has internally transferred 450 jobs that already exist from Northern OH to Clermont County and was supposed to create only 550 new jobs to meet state tax abatement requirements. Tata claims these 550 "newly created" jobs will be high-level software development jobs but has not advertised them in the local and state community media. This means that OH state government financed up to $27,000 per job for Tata to create 550 IT jobs that are already there. The outsourcing deal with Citigroup that is under Fed Govt. review further implies that more OH jobs will be transferred to Tata and not be newly created jobs as the original state tax abatement implies. OH does not benefit when 1,000 jobs are retained in the state from Tata transfers to a total of $18 million for 8 years and no new jobs are actually created in the state.
BHO has pledged to stop giving tax breaks to companies that ship jobs overseas. Indian offshore firms, such as Tata, Satyam, Wipro, Resourcesoft, Megasoft, Infosys, Global Cynex, etc. here at home are worried that he might impose sanctions on foreign companies that discriminate against American workers whose exclusion from employment has been the goose that lays them the golden egg for unfair competition. They are meeting with BHO officials in March 2009 to make sure any job program he comes up with does not stop the white collar bleed to India and take away the one-sided benefits that have flown their way to date at American workers' expense.
We have to be vigilant that enemies of the American workers do not take over the BHO team. I have my doubts about the commitment of certain people in his team whom I consider as not committed to protect American jobs because they are so obsessed with "free trade." Sen. Gregg (then-DOC secretary nominee) comes to mind because he wants to raise the number of H-1B visas to 150,000. He is clueless if he bases his knowledge from the talking points of the GOP in their blind kamikaze support of free trade to exploit cheap labor. He parrots what Bill Gates (another corporate moron) who makes unsubstantiated and unproven claims that every H-1B visa creates 5 jobs for Americans. Only an idiot will make such a statement.
BHO has nominated Gregg to be a member of his team because he is Republican in the name of bipartisanship. It seems like BHO is a prisoner of old ideas (forget the big talk about change; talk is cheap). He is stacking his economic team with pro H-1B, anti-worker dregs from industry and WJC & GWB administrations, e.g., Larry Summers, Ron Kirk, Diana Farrell, etc. His position on the subject may have been written by industry. It's dishonest to claim change when you are renewing, repeating or perpetuating the policies of the past. Those of us who worked hard for his election are disappointed with these moves even though he is different from his predecessors. Maybe his opponents and critics are right that his "lack of experience" will cost us plenty. He has been in office for under 5 weeks, and he has already allowed these adversaries of the national interest and the average workingman to take over the direction of his administration. He may be cool under duress but is weak under in the face of the opposition; he may be articulate on the issues but words are meaningless if they don't help the average American worker.
What federal legal safeguards protect US workers from Citigroup for discriminatory hiring actions by outsourcing companies, such as Tata, when the Fed Govt.'s financial bailout assistance is provided to benefit the likes of Citigroup Financial? Tata has an established track record of not hiring US citizens for IT contracts and will not openly discuss this outsourcing concern with the news media. We have some of the best, if not the best, in their fields, whether it is manufacturing and engineering or literature and humanities. Just look at the number of American Nobel laureates every year. Our responsibility is with our graduates who are entering the workforce and workers who want to work in and move up their field. We owe nothing to foreign nationals!
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Talkback on Article
Mar 26, 2009, 10:36 am
I am a little surprised at the protectionist tone on these forums.
Imagine standing in a Tommy Hilfiger store with same quality of shirts displayed in two racks - one stitched in USA and the other in may be Bangladesh. And the America stitched shirt is 4 times costlier. Would you buy the costlier one out of patriotism?
Free trade practices will bring benefits but will have their downside too. Be prepared for the downside if you want the benefits.
Pawan, India
Pawan, India
Mar 20, 2009, 11:01 am
http://www.americaneconomicalert.org/
Wake up or die
Kennedy, USA
Kennedy, USA
Mar 18, 2009, 7:57 pm
I agree all of these TARP saved Banks are very unamerican...they outsource and hire foreign guest workers. We should find small credit union banks that support America and Americans.
debug, Fairfield, CA
debug, Fairfield, CA
Mar 13, 2009, 4:56 pm
Tata, Satyam, Wipro, Resourcesoft, Megasoft, Infosys, Global Cynex
I think the such companies should not be allowed to hand over IT jobs to foreigners or locations outside the US.
Look at the fact, our economy is in crises. Obama is spending trillions in tax payer money to create jobs & save the country from disaster. It does not make sense to let such companies undo the efforts.
Tim, Chicago, US
Tim, Chicago, US
Mar 13, 2009, 4:43 pm
Tata, Satyam, Wipro, Resourcesoft, Megasoft, Infosys, Global Cynex
I think the such companies should not be allowed to hand over IT jobs to foreigners or locations outside the US.
Look at the fact, our economy is in crises. Obama is spending trillions tax payer money to create jobs & save the country from disaster. It does not make sense to let such companies undo the efforts & the expected outcome of the funds being given to rescue or create jobs.
Tim, Chicago, US
Tim, Chicago, US
Mar 13, 2009, 4:42 pm
Tata, Satyam, Wipro, Resourcesoft, Megasoft, Infosys, Global Cynex
I think the such companies should not be allowed to hand over IT jobs to foreigners or locations outside the US.
Look at the fact, our economy is in crises. Obama is spending trillions tax payer money to create jobs & save the country from disaster. It does not make sense to let such companies undo the efforts & the expected outcome of the funds being given to rescue or create jobs.
Tim,
Tim,
Mar 13, 2009, 4:35 pm
In view of the fact, trillions of tax money is being used to create jobs & rescue the economy, it makes sense to put on hold, hand over of employment contracts to these companies.
It makes sense to put on hold, & promote local employment for graduates through training, if & when required, until such time, we are out of the current crises.
The government should pitch in for training to encourage corporations hire local population.
I think we don't have a choice; assignments must be prioritized to save the country from the serious anticipated consequences & avoid the failure of the obama recovery plan.
Tim, Chicago, US
Tim, Chicago, US
Mar 4, 2009, 5:16 am
I agree with your article wholeheartedly, I see this all the time, these companies totally discreminate against the american worker.
Why can't we boycott Citigroup? I plan on writing them a letter.
- K
Karen, Reston, VA Fairfax
Karen, Reston, VA Fairfax